Diagnostic Sleep Companies to Pay $650,000 to Settle False Claims Act Suit

Three related companies, Areté Sleep LLC, Areté Sleep Therapy LLC and Areté Holdings LLC, have agreed to pay the United States Department of Justice $650,000 to settle claims that the Areté companies defrauded Medicare in violation of the False Claims Act.  The settlement resolves claims that Areté submitted false claims to Medicare for diagnostic sleep tests performed by technicians lacking the licenses or certifications required by Medicare’s rules and regulations.  The settlement also resolves connected allegations that Areté submitted false claims for medical devices that were prescribed as a result of the technicians’ sleep tests.

Areté, which filed for bankruptcy in January 2011, agreed that the $650,000 settlement will be paid out of the sale of its assets under the supervision of the bankruptcy court.  Relator Amanda Drews, who blew the whistle on Areté’s fraud, will receive $107,250 as her share of the settlement for her efforts in uncovering the false claims to Medicare.

For more information see: USDOJ: Arete