CHIPLEY-BASED PHYSICAL THERAPY PRACTICE PAYS OVER $750,000 TO RESOLVE FALSE CLAIMS ACT LITIGATION

PENSACOLA, FLORIDA – Absolute Physical & Aquatic Therapy, LLC; Chipley Physical Therapy, LLC; Ruben Laurel; and Lorrie Laurel have agreed to pay $754,722.88 to resolve allegations that they violated the False Claims Act (“FCA”) by knowingly causing the submission of false claims for physical therapy services allegedly performed by Lorrie Laurel, a physical therapist, while she was outside the United States, announced U.S. Attorney John P. Heekin.

U.S. Attorney Heekin said, “I am incredibly proud of the great work by my office to recover these U.S. taxpayer monies that were improperly paid out for false claims submitted by this physical therapy practice. President Donald J. Trump and Attorney General Pam Bondi have made the elimination of fraud, waste, and abuse in federal programs a top priority, and my office will continue to zealously pursue any person or business who tries to rip off the U.S. Government and steal from the U.S. taxpayer.”

Defendant Chipley Physical Therapy, LLC provides outpatient physical and aquatic therapy services in Chipley, Marianna, and Bonifay, and is owned and operated by Defendants Ruben and Lorrie Laurel. Defendant Absolute Physical & Aquatic Therapy is a physical/occupational therapy group in private practice owned and operated in part by Defendant Ruben Laurel.

The United States alleged that Defendants knowingly submitted false claims for payment in violation of the False Claims Act by billing the government for services while Defendant Lorrie Laurel was out of the country and on cruises in Mexico, Jamaica, Aruba, and the Bahamas between July 2019 and March 2024.  Specifically, Defendants submitted 503 claims for payment to the United States for services Defendant Lorrie Laurel allegedly performed while she was abroad. The FCA provides for the award of treble damages and civil penalties for, among other things, knowingly presenting or causing the presentment of false or fraudulent claims to the United States for payment or approval. 31 U.S.C. § 3729(a)(1)(A).

To resolve the pending litigation, Defendants agreed to pay treble damages and penalties, in the amount of $754,722.88, of which $19,988.34 is restitution.  As part of the resolution, Defendants also agreed to: (1) appoint and maintain an external Compliance Officer for a period of three years who will submit periodic reports to the United States; (2) develop and implement  policies and procedures regarding appropriate billing and medical record documentation for compliance with Federal health care program requirements; (3) require quarterly training for all employees on Federal health care program billing, coding and claim submission, and medical record documentation requirements; and (4) the imposition of additional stipulated penalties for failure to comply with any of the aforementioned non-monetary terms.

“Submitting claims for services that could not have been performed is a blatant abuse of federal health care programs and undermines the trust patients place in the system,” said Acting Special Agent in Charge Ricardo M. Carcas of the U.S. Department of Health and Human Services Office of Inspector General. “Today’s resolution reflects our commitment to working with our law enforcement partners to safeguard taxpayer funds and ensure accountability for those who knowingly submit false claims.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Ariel Bowen, a former employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is United States ex rel. Ariel Bowen v. Absolute Physical & Aquatic Therapy, LLC, et al., Case No. 5:21-cv-236-TKW-MJF (N.D. Fla.). Ms. Bowen will receive $150,944.58 in connection with the settlement.

The U.S. Department of Health and Human Services provided substantial assistance in the investigation.

Assistant U.S. Attorneys Mary Ann Couch and Marie Moyle represented the United States in this matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit https://www.justice.gov/usao-ndfl.