October 23, 2001  KPMG Peat Marwick

KPMG Peat Marwick, LLP. has agreed to pay over $9 Million Dollars to settle claims asserted in a qui tam lawsuit filed by John Schilling, a former supervisor for reimbursement. KPMG had been retained to prepare Medicare and Medicaid reports and submit them to the government on behalf of four Florida hospitals. The allegations of the qui tam case were that KPMG knowingly made claims for repayment, on behalf of its clients, which were false, exaggerated or ineligible for payment. Allegations were also asserted that KPMG concealed errors from government auditors to enable its clients to illegally retain Medicare funds.

Under the provisions of the False Claims Act, Mr. Schilling will be eligible to receive between 15 and 25 percent of the $9 Million Dollar Settlement, for having filed the qui tam case.

See U.S. Dept of Justice Press Release 10/23/01

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