Healthcare IT Company Will Pay More Than $1.7 Million To Settle Whistleblowers’ Claims of Fraud

Maryland Company Was Accused of Misusing N.I.H. Grant Funds

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WASHINGTON, D.C. (October 10, 2023) — A Maryland-based IT company is paying more than $1.7 million to the U.S. government to resolve whistleblowers’ claims that it misused taxpayer funds from a $15 million federal grant and several federal contracts.

Instead of billing the National Institutes of Health only for legitimate expenses under these programs, Capital Technology Information Services, Inc. of Rockville, Md., allegedly charged the government for unrelated or unperformed work, along with personal items such as vehicles, mortgage payments, and a wedding, according to court documents and a press release issued by the U.S. Attorney’s Office for the District of Maryland.

The Employment Law Group® law firm represents two of the whistleblowers in the matter, Sherette Rhodes and Alisa Mosley. Dr. Rhodes and Ms. Mosley will receive a share of CTIS’ payment to the government.

The settlement led to the dismissal on September 13 of all claims in the matter against CTIS and individuals including Rep. Kweisi Mfume (D-Md.). Before his current stint in Congress, Mr. Mfume served as Chief Health Equity Officer for CTIS and was principal investigator for the Health Policy Research Consortium (HPRC), a body set up by CTIS under the terms of the federal grant, which promoted research into disparities in health outcomes for minority communities.

Dr. Rhodes and Ms. Mosley filed their complaint in 2017 against CTIS, Mr. Mfume, and others under the federal False Claims Act. The FCA, originally signed into law by President Abraham Lincoln in 1863, makes it illegal to defraud the federal government. The law includes a “qui tam” provision that allows whistleblowers to file a complaint on behalf of the government and — if they prevail — to receive a portion of any resulting settlement or judgment.

Dr. Rhodes and Ms. Mosley’s FCA complaint, along with a later complaint filed by another CTIS whistleblower who is not represented by The Employment Law Group, remained sealed for years while being investigated by the U.S. Department of Justice. Both cases were opened to the public on October 2, several months after the government’s June 16 announcement of a settlement, and the Rhodes/Mosley complaint was finally unsealed today.

“Sherette and Alisa saw something, so they said something,” said Janel Quinn, a principal of The Employment Law Group, who represents Dr. Rhodes and Ms. Mosley. “They believed in the importance of HPRC’s mission — equality of health outcomes — and they spoke up for the proper use of tax dollars to achieve it. This settlement is their vindication and their just reward.”

Ms. Quinn worked on the case with R. Scott Oswald, managing principal of The Employment Law Group, and Assistant U.S. Attorney Tarra DeShields of the U.S. Attorney’s Office for the District of Maryland.

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Case Information

United States ex rel. Rhodes v. Capital Technology Information Services, Inc.
No. 8:17-cv-00609
U.S. District Court for the District of Maryland
Complaint filed on March 2, 2017 (available here)

United States ex rel. Ezerski v. CTIS, Inc.
No. 8:18-cv-00486
U.S. District Court for the District of Maryland
Complaint filed on February 16, 2018

Note: The Employment Law Group is not involved in the Ezerski case.

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About The Employment Law Group

The Employment Law Group® law firm represents whistleblowers and employees who stand up to wrongdoing in the workplace. Based in Washington, D.C., the firm takes cases nationwide.