Debt Collection Firms Hit With $9.4 Million Default Judgment (1)

Indiana-based debt collection companies Trustmark Recovery Services Inc. and Medical Business Office Corp. must pay $9.4 million in a False Claims Act suit alleging Medicare billing fraud following a default judgment, an Illinois federal court said.

Judge Jeremy C. Daniel of the US District Court for the Northern District of Illinois Feb. 25 granted default judgment in whistleblowers Kenya Sibley’s and Jasmeka Collins’ favor. Because their allegations “are now taken as true,” the whistleblowers can show US Centers for Medicare and Medicaid losses totaling $2.6 million, which are trebled to $7.8 million, the court said in a Thursday order. ...