On November 24, 2010, the U.S. Department of Justice announced that it had entered into a settlement agreement with Dr. Walter Janke, his wife Lalita Janke, and their company Medical Resources L.L.C. in which the couple agreed to pay $22.6 million to resolve allegations that they violated the False Claims Act. According to the lawsuit, the Jankes caused claims to be submitted to Medicare that falsely increased the severity of beneficiary diagnoses, resulting in higher Medicare payments. Besides suing the Jankes, the Government also successfully petitioned the court to freeze $20 million of the Jankes’ assets on order to pay a portion of the settlement.
