United States of America, ex rel. Magnino, et al. v. Passages Hospice, LLC, et al.
In January 2014 a criminal complaint was filed by the Department of Justice related to Seth Gillman and Passages Hospice. In May 2014 an indictment followed, adding three additional Passages Hospice employees. Shortly thereafter, the Department of Justice moved to intervene in the 2009 case filed by Krislov & Associates, Ltd., No. 09 C 2009 pending in the Northern District of Illinois, and on June 4, 2014, the court lifted the seal on Relator's False Claims Act (Qui Tam) complaint against Seth Gillman and Passages Hospice.
As has been widely reported, the Defendants are accused of submitting false claims to Medicare and Medicaid for hospice care for patients who were not terminally ill, for "up-coding" patients for higher levels of care that did not qualify for such care, as well as other similar types of False Claims Act claims.