COLORADO SPRINGS — A Colorado Springs company has agreed to pay $400,000 to settle allegations that they submitted false claims for aquatic therapy.

Dynamic Physical Therapy and its owner, Emad Yassa, have agreed to pay the United States $400,000 to resolve allegations that they violated the False Claims Act by falsely billing federal health care programs for aquatic therapy services. 

Dynamic is a physical therapy company that operates two clinics in Colorado Springs and submitted bills for physical and aquatic therapy services to Medicare and other federal health care programs.

In 2019, a former employee of Dynamic filed a sealed civil “whistleblower” lawsuit under the False Claims Act alleging that Dynamic, at the direction of Yassa, was billing Medicare for medically unnecessary physical therapy services and for services that had not actually been provided. 

After the whistleblower complaint was filed, Yassa signed a “Stipulation and Final Board Order” with the State of Colorado’s Physical Therapy Board. In the stipulation, Yassa admitted that, from mid-2014 to mid-2017, he “routinely and improperly billed insurance companies, Medicare, and Medicaid for individual aquatic therapy sessions for his patients when they had actually participated in group aquatic therapy sessions,” and also “routinely failed to document in his patients’ records that they had participated in group aquatic therapy sessions.” 

In an investigation, the United States uncovered evidence indicating that Dynamic had also submitted false claims to TRICARE, a health care program for uniformed service members, retirees, and their families. 

“The Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, will diligently investigate individuals and companies that pilfer taxpayer resources and degrade the quality of the health care provided to America’s warfighters,” said Michael Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. “Today’s outcome reflects DoD’s commitment to hold those who commit fraud against TRICARE and other U.S. Government healthcare programs accountable.”

The claims resolved by the settlement are allegations only, and there has been no determination of liability.