Justice settles Medicaid fraud case

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Maximus spokeswoman Rachael Rowland said the unnamed employees no longer work for the company. She also said the settlement stemmed from “a single project dating back to 1999 that did not live up to our own professional standards.”

Maximus, founded in 1975 and publicly traded, employs thousands and posted revenues of more than $600 million in 2005.

Last year, Maximus announced the firing of Chief Executive Officer Lynn Davenport, citing unspecified conduct toward a former female employee. The company’s former chief financial officer, Mr. Montoni, was appointed to take over the job.

Under the settlement announced yesterday, the U.S. Attorney’s Office still reserves the right to file criminal charges if Maximus fails to comply with the terms. The deal also authorizes federal authorities the right to review Maximus‘ contracts and provide information to the company’s clients.

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