Six Detroit Nursing Homes to Pay $4.5 Million to Settle Medicare/Medicaid Fraud Action

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Whistleblower in False Claims Act case alleged nursing homes were severely understaffed and provided grossly substandard care to residents, and submitted false claims to Medicare and MedicaidDETROIT, MI / ACCESS Newswire / July 1, 2025 / The United States government and the State of Michigan have reached a $4.5 million settlement with Villa Financial Services LLC ("VFS"), Villa Olympia Investment LLC ("VOI") and six Villa nursing homes they owned and operated throughout the greater Detroit area to resolve a legal action alleging violations of the False Claims Act filed by a whistleblower.The Villa nursing homes owned and operated by VFS and VOI include The Ambassador, Father Murray, Imperial, Regency, St. Joseph's and Westland. The whistleblower alleged that VFS and VOI and the nursing homes defrauded the Medicare and Medicaid programs by not providing the level and quality of care that the government healthcare programs require and pay for."We commend our clients for blowing the whistle and bringing this lawsuit on behalf of the government to redress the severe understaffing and grossly substandard care that they allege pervaded the Villa nursing homes," said Casey Preston, co-counsel for the whistleblower and member of Cohen Milstein's Whistleblower Practice. "This settlement illustrates the positive impact whistleblowers can achieve when they step forward and report conduct by nursing homes that deprives vulnerable residents of appropriate care and cheats government programs like Medicare or Medicaid."The whistleblower in the case is Detroit Integrity Partners, which brought claims under the False Claims Act and Michigan Medicaid False Claim Act.The nursing home residents included elderly, disabled, and bedridden individuals who require basic care to carry out their daily functions and maintain their physical, mental, and psychological well-being. Detroit Integrity Partners alleged that from July 1, 2018 through January 31, 2021, the defendants (i) failed to provide a sufficient number of appropriately trained staff to adequately care for the residents, (ii) failed to take adequate measures to prevent, control, and provide care related to infections, such as pneumonia, sepsis, urinary tract infections, and wound infections, (iii) failed to take adequate measures to prevent and follow appropriate protocols related to resident falls, (iv) failed to appro...

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