Maxim Healthcare Said to Settle With U.S. Over Probe

By David Voreacos – Sep 12, 2011 9:43 AM ET

Maxim Healthcare Services Inc., which provides in-home health and nursing services, will pay $150 million to resolve criminal and civil probes of fraudulent practices, according to two people familiar with the matter.

The U.S. Justice Department will file a criminal case in federal court in New Jersey against Maxim, and has agreed to defer prosecution, according to the people, who declined to be identified because the matter isn’t public.

U.S. Attorney Paul Fishman will announce criminal charges today in Newark, New Jersey, against nine individuals, including “high-level employees of the company, for related criminal conduct,” according to a statement, which didn’t name the company.

Maxim spokeswoman Rebecca Kirkham said the company, based in Columbia, Maryland, will have a statement later today.

The payments will resolve claims under the U.S. False Claims Act, which allows private citizens to sue on behalf of the government and share in any recovery. More than 40 U.S. states are part of the settlement, according to the people.

To contact the reporter on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.