Overview
Cohen Milstein represented Detroit Integrity Partners, a whistleblower, who brought a False Claims Act and Michigan Medicaid False Claim Act qui tam lawsuit against Villa Financial Services LLC (“VFS”), Villa Olympia Investment LLC (“VOI”), and six Villa nursing homes they owned and operated throughout the greater Detroit area.
The whistleblower alleged that VFS and VOI and the nursing homes defrauded the Medicare and Medicaid programs by not providing the level and quality of care that the government healthcare programs require and pay for. Specifically, the nursing homes were severely understaffed and provided grossly substandard care to residents and submitted false claims to Medicare and Medicaid for payment for the noncompliant services.
This qui tam action was brought on behalf of the United States and the State of Michigan.
The federal False Claims Act and its state law equivalents permit private citizens to bring lawsuits on behalf of the government against entities who present false or fraudulent claims for payment under government contracts or programs, such as Medicare, Medicaid, and TRICARE. Whistleblowers are entitled to receive a portion of the proceeds of any settlement or judgment awarded against a defendant.
Important Dates & Rulings
- On June 17, 2025, the United States and Michigan reached a $4.5 million settlement with VFS, VOI, and six Villa nursing homes. In settling, the defendants did not admit liability.
- On June 17 and June 18, 2025, the United States and Michigan filed notices of intervention in the whistleblower’s action.
- On October 16, 2019, Detroit Integrity Partners filed its qui tam action, United States and the State of Michigan ex rel. Detroit Integrity Partners v. Detroit Nursing Center, LLC, et al., Case No. 3:19-cv-13046-MAG-RSW, before the U.S. District Court for the Eastern District of Michigan.
Case Background
The Villa nursing homes, owned and operated by VFS and VOI, are located throughout the greater Detroit area and include The Ambassador, Father Murray, Imperial, Regency, St. Joseph’s and Westland.
The nursing home residents include elderly, disabled, and bedridden individuals who require basic care to carry out their daily functions and maintain their physical, mental, and psychological well-being.
Detroit Integrity Partners alleged that from July 1, 2018 through January 31, 2021, the defendants (i) failed to provide a sufficient number of appropriately trained staff to adequately care for the residents, (ii) failed to take adequate measures to prevent, control, and provide care related to infections, such as pneumonia, sepsis, urinary tract infections, and wound infections, (iii) failed to take adequate measures to prevent and follow appropriate protocols related to resident falls, (iv) failed to appropriately provide for residents’ activities of daily living, including residents’ toileting needs, and (v) failed to follow appropriate protocols for the treatment of pressure ulcers – all in violation of federal and state law.
Detroit Integrity Partners further alleged that by knowingly and systematically failing to provide these services and/or providing them in a materially and grossly substandard way, defendants violated Medicare’s and Medicaid’s requirements. As a result, the bills the defendants submitted to Medicare and Medicaid for the care and services they provided to the residents were materially false in violation of the federal False Claims Act and the Michigan Medicaid False Claim Act.
Case name: United States ex. rel. Detroit Integrity Partners v. Detroit Nursing Center, LLC, et al., Case No. 19-CV-13046-MAG (E.D. Mich.)