LAWSUITS NEWS & LEGAL INFORMATION
Medi-Cal Fraud
San Francisco, CA: (Nov-06-07) The federal government brought a lawsuit against Stars Behavioral Health Group, a statewide chain of mental health centers for adolescents, alleging that the facility wrongly charged Medi-Cal for treatment it did not perform. The suit claimed that Medi-Cal was charged for treatment at a San Leandro clinic on days when the youths were home with their families. The suit was filed under seal in 2003 by Joseph Krzesni, the former regional director of Stars Behavioral Health Group accusing the company of defrauding the government. Stars, headquartered in Oakland, provides mental health services for youths referred by the juvenile court system in criminal cases and by family courts in cases of abuse and neglect.
Records show that Krzesni, a former Humboldt County mental health director, worked for the company from 1995 until October 2003, when he left in a dispute that he said was related to his lawsuit. As part of a settlement reached, Stars Behavioral Health Group will pay $1 million to resolve allegations. Legal counsel claimed that Krzesni will receive $200,000 of the settlement, and the state and federal governments will get $400,000 each. [SAN FRANCISCO CHRONICLE: MEDI-CAL FRAUD]
Published on Nov-8-07
Records show that Krzesni, a former Humboldt County mental health director, worked for the company from 1995 until October 2003, when he left in a dispute that he said was related to his lawsuit. As part of a settlement reached, Stars Behavioral Health Group will pay $1 million to resolve allegations. Legal counsel claimed that Krzesni will receive $200,000 of the settlement, and the state and federal governments will get $400,000 each. [
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