ATLANTA — Crown Medical Solutions LLC and its owners, Michelle and Philanzo King, agreed to pay $825,000 to resolve allegations that they violated the False Claims Act by submitting false claims for payment to Medicare. The settlement addresses accusations that the company billed the federal health program for durable medical equipment that did not meet coverage requirements.

The United States alleged that from Nov. 1, 2017 through April 30, 2019, Crown Medical Solutions and its owners billed Medicare for durable medical equipment provided to beneficiaries that was not medically necessary or not properly prescribed by a physician. Crown Medical Solutions was a supplier of durable medical equipment such as knee braces, heel stabilizers, and back braces.

Whistleblower Karen Martinelli will receive approximately $123,750 of the settlement amount. The civil settlement includes the resolution of claims brought under the qui tam provisions of the False Claims Act by Martinelli.

"The Department of Justice is committed to fighting healthcare fraud and holding accountable those who exploit federal healthcare programs for personal profit," said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. The settlement amount is based on the defendants’ ability to pay.

Why It Matters

This settlement demonstrates the continued enforcement of the False Claims Act against suppliers of durable medical equipment. The involvement of a whistleblower under the qui tam provisions shows the role private individuals play in identifying potential fraud within federal healthcare programs. The agreement resolves allegations without a formal admission of liability by the defendants.

Timeline

From Nov. 1, 2017 through April 30, 2019, the United States alleged that Crown Medical Solutions and its owners billed Medicare for durable medical equipment provided to beneficiaries that was not medically necessary or not properly prescribed by a physician.

Also on Sept. 21, 2026, Assistant Attorney General Brett A. Shumate stated that the Department of Justice is committed to fighting healthcare fraud and holding accountable those who exploit federal healthcare programs for personal profit. The resolution resulted from a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Georgia. The civil settlement included the resolution of claims brought under the qui tam provisions of the False Claims Act by Karen Martinelli, who will receive approximately $123,750 of the settlement amount. The matter was handled by Commercial Litigation Branch Trial Attorney Anna Jugo and Assistant U.S. Attorney Neeli Ben-David for the Northern District of Georgia. The claims resolved by the settlement are allegations only and there has been no determination of liability.

What's New

The official record states that Crown Medical Solutions LLC and its owners, Michelle and Philanzo King, agreed to pay $825,000 to resolve allegations of violating the False Claims Act by submitting false claims to Medicare. Additional research material references a title "Agreed Medical Examination" in the Encyclopedia of Pain.

How Sources Differ

Regarding the settlement amount and parties, justice.gov states that the official record shows Crown Medical Solutions LLC and its owners, Michelle and Philanzo King, agreed to pay $825,000 to resolve allegations of violating the False Claims Act by submitting false claims to Medicare.

The United States District Court for the Northern District of Georgia docket 1:19-cv states that the qui tam case is captioned United States ex rel. Martinelli v. Crown Medical Solutions, LLC, et al. No. 1:19-cv-01660 (N.D. Ga.).