$62M Settlement: Seoul Medical Group False Claims Case
Table of Contents
Case Background
This high-stakes legal battle, filed in the United States District Court for the Central District of California, involved allegations of widespread medical billing fraud against the federal government, coupled with claims of workplace misconduct. The Plaintiff, Paul Pew, acted as a "Qui Tam Relator," which meant he brought the case on behalf of the United States of America, based on insider information he possessed.
Cause
The core of the action centered on alleged violations of the federal False Claims Act. The complaint detailed that the Defendants, Seoul Medical Group, Inc., and Advanced Medical Management, Inc., had consistently submitted false or fraudulent claims for reimbursement to federal healthcare programs, including Medicare and Medicaid. Pew claimed that the companies had misused taxpayer dollars by charging the government for services or procedures that were either unnecessary, inflated, or never performed. Separate from the fraud, Pew also claimed that the Defendants had subjected him to workplace discrimination, harassment, and illegal retaliation after he spoke out against the fraudulent practices he had witnessed.
Injury
As a direct result of his whistleblowing and the alleged subsequent hostile work environment, Mr. Pew suffered significant professional and personal losses. The complaint stated that the Defendants terminated his employment, causing him to lose substantial earnings and employment benefits. Furthermore, the immense stress and humiliation from the alleged discrimination and retaliation seriously injured his well-being, leading to emotional distress, worry, and anxiety that required ongoing treatment and attention.
Damages Sought
The initial complaint called for severe financial penalties against the medical groups. For the government's fraud claim, the Relator sought treble the government's total damages meaning three times the amount of money the government had lost plus civil penalties for each false claim filed. For his personal claims of retaliation and distress, Mr. Pew sought compensation for all lost wages and benefits, in addition to an unspecified amount to cover his emotional suffering. He also requested a relator's award of up to 30% of the total funds the government recovered, as authorized by the False Claims Act for whistleblowers.
Key Arguments and Proceedings
The litigation moved swiftly from the initial filing in 2020 through a contentious discovery phase, where both sides gathered evidence and witness testimony.
Legal Representation
Plaintiff(s): United States of America, ex rel Paul Pew
· Counsel for Plaintiff(s): William K. Hanagami | Abram J. Zinberg | Karen Yumi Paik
Defendant(s): Seoul Medical Group, Inc., | Advanced Medical Management, Inc.
· Counsel for Defendant(s): Vinay Kohli | Jonathan Slowik | Ariel Brotman | Steven Pearlman
Key Arguments or Remarks by Counsel
The attorneys fiercely contested the facts and the law throughout the proceedings, leading to several motions before the Court.
Claims
Counsel for the Plaintiff forcefully argued that irrefutable evidence, including internal memos and billing records, proved a systemic pattern of healthcare fraud. They had maintained that the Defendants deliberately created a toxic environment to silence Mr. Pew, punishing him for attempting to correct illegal activity. The Relator's team asserted that the retaliatory termination was a clear violation of whistle-blower protection laws, showing a consciousness of guilt on the part of the corporate leadership.
Defense
In response, the defense team, representing Seoul Medical Group, Inc., and Advanced Medical Management, Inc., categorically denied all accusations. They argued that any alleged billing discrepancies resulted from honest mistakes or administrative errors, not intentional fraud. Defense counsel strongly maintained that the companies had rigorous compliance policies and procedures in place. Regarding the employment claims, the defense argued that the Relator’s termination resulted from legitimate performance issues, not retaliation. They further contended that Mr. Pew had failed to mitigate his damages by not seeking comparable employment quickly enough after his dismissal. The defense also raised a claim of "lack of employer-employee relationship," challenging whether certain employment protections even applied to Mr. Pew's position.
Settlement
Just as the parties prepared for a protracted and costly trial, the case reached a monumental resolution. The parties had agreed to a comprehensive settlement, which averted the need for a jury to render a verdict.
Resolution of Claims
The Defendants, Seoul Medical Group (SMG), its subsidiary Advanced Medical Management (AMM), former owner Dr. Min Young Cha, and Renaissance Imaging Medical Associates had collectively agreed on March 26th, 2025, to pay more than $62,000,000 to resolve the whistle-blower’s allegations under the False Claims Act.
This substantial settlement closed the government’s claim for lost taxpayer funds and civil penalties, detailing payments from the four entities:
· Seoul Medical Group and Advanced Medical Management: These two entities, the primary Defendants headquartered in Los Angeles’ Koreatown neighborhood, combined to pay over $58,000,000 of the total settlement amount.
· Dr. Min Young Cha: The companies’ former president and majority owner agreed to a personal payment of about $1,800,000.
· Renaissance Imaging Medical Associates: This radiology group, which allegedly worked with SMG in the scheme, agreed to pay about $2,400,000.
In accordance with the Qui Tam statute, Paul Pew, the Relator, received a statutorily mandated portion of the recovery for his role in exposing the fraud, which resolved his personal claims for wrongful termination, harassment, and emotional distress, compensating him for the injuries he had sustained.
Court documents are available upon request at jurimatic@exlitem.com