Maximus Inc. disclosed that it has received a subpoena from the criminal division of the U.S. Dept. of Justice. The subpoena follows the filing of a False Claims Act lawsuit that claims the consulting company overcharged the federal government when it attempted to recoup Medicaid funds for foster children in the District of Columbia.
The whistleblower suit alleged that Maximus, which received 10 cents for every dollar it helped the District recoup, demanded that Medicaid reimburse the District for services that were not rendered and created false records to support the claims.
These developments were reported in the May 3, 2006 issue of the Washington Times.