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DALLAS, Dec. 13, 2018 /PRNewswire/ -- Waters & Kraus, LLP is pleased to announce a $1.634 million settlement of a qui tam lawsuit by Western Medical Group, Benjamin D. George, and Jody C. Rookstool. The settlement resolves allegations that the defendants submitted false claims to Medicare in connection with a durable medical equipment telemarketing scheme targeting Medicare beneficiaries.

Craig Bearden, represented by Charles Siegel and Caitlyn Silhan of Waters & Kraus, LLP, briefly worked for Western Medical Group. As alleged in his complaint, during his employment Mr. Bearden learned that the company took advantage of unsuspecting Medicare beneficiaries through a bait-and-switch scheme, using telemarketers who initially claimed to be calling to sell identity theft protection but ultimately induced the beneficiaries into agreeing to order Medicare-covered knee and back braces. The scheme violated Medicare's clear prohibition on unsolicited telemarketing of durable medical equipment, as well as the False Claims Act. The U.S. Attorney for the District of Utah announced the settlement on Dec. 11, 2018.

"We are proud to represent Mr. Bearden in this case, and commend his courage in coming forward to report a fraudulent scheme that targeted vulnerable seniors at the taxpayers' expense," Caitlyn Silhan said. "We also greatly appreciate the hard work and dedication of the federal prosecutors and agents that investigated this case, especially Sandra Steinvoort, Assistant U.S. Attorney for the District of Utah."

Mr. Bearden's case is docketed as U.S. ex rel. Craig Bearden v. Arizona Medical Supply, LLC, dba Western Medical et al., No. 2:13-cv-01127. The other case resolved in connection with this settlement is U.S., ex rel., Michelle Boucher, P.A., v. KPM Capital, LLC dba Western Medical Group, et al.

About Waters & Kraus
Waters & Kraus, LLP is a national plaintiffs' firm with lawyers litigating complex civil matters. The firm represents plaintiffs in qui tam whistleblower actions and False Claims Act litigation nationwide. Based in Dallas, Texas, the firm has offices in California, Louisiana, and by appointment in Illinois. Our attorneys represent whistleblowers exposing fraud and false claims against the government in a variety of matters including government contractor fraud and procurement fraud, healthcare fraud, assisted living fraud, SEC fraud, and Foreign Corrupt Practices Act violations. Contact us at 800.226.9880 to learn more about our practice and our qui tam attorneys.

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SOURCE Waters & Kraus, LLP