Unified Care Services LLC False Claims Act settlement

Case summary

Unified Care Services LLC is a chain of skilled nursing facilities based in Torrance, California. When Unified Care and its affiliates applied for PPP loans and loan forgiveness in 2020, they certified that they were small businesses with fewer than 500 employees. The government alleged that the applications failed to disclose that the entities were part of a larger chain of facilities, owned by Emmanual David, that shared common ownership and control, making them ineligible for PPP loans. The claims are allegations only, and there has been no determination of liability.¹

The affiliates covered by the settlement include Unified Care Services LLC, Casa Montana LLC, Geri-Care Inc., Geri Care V LLC, Pacific Palms Healthcare LLC, Foothill Care Center Inc., Mount Megiddo LLC and Canyon Properties III LLC. They also include Cloverleaf Enterprises Inc., Foothill Care Center LLC, Foothill Care Center II LLC, David Kleis III LLC, David Kleis II LLC, Miramonte Enterprises LLC and Washington Enterprises III LLC.¹

In January 2025 Unified Care, its affiliates and David agreed to pay $18 million to resolve the False Claims Act allegations.¹

The settlement resolved a qui tam whistleblower lawsuit captioned United States ex rel. Ashwani Chawla v. Unified Care Services et al., CV 21-5935-GW, in the Central District of California. The whistleblower will receive $2,070,000 in connection with the settlement, about 11.5 percent of the $18 million.¹

Notes

1. U.S. Department of Justice, "Unified Care Services LLC Agrees to Pay $18M to Settle False Claims Act Allegations Relating to Paycheck Protection Program Loans" (original), January 17, 2025. ↩₁ ↩₂ ↩₃ ↩₄

Summary written from the documents on this page; every sentence is sourced.