Corporate Compliance

8th Circuit Court upholds penalties against owner of Iowa's largest home health agency

Compliance Monitor, August 29, 2007

The 8th Circuit Court of Appeals upheld penalties imposed by the Office of Inspector General (OIG) against the former owner/CEO of Hawkeye Health Services, Inc., Iowa's largest home health provider.

The OIG assessed administrative penalties of $711,212 under the Civil Monetary Penalties Law.

The fraudulent claims nvolved unallowable costs related to:

  • CEO Thomas Horras' divorce proceedings
  • Horras's personal use of luxury automobiles owned by Hawkeye
  • Horras's personal membership dues to a social club
  • Pest control services provided at Horras's home
  • Professional fees related to the sale of Hawkeye
  • Marketing costs and charitable donations

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