Case 2:21-cv-00113-NT Document 1 Filed 04/27/21 Page 1 of 13 PageID #: 1
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`UNITED STATES DISTRICT COURT
`DISTRICT OF MAINE
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`Civil Action No.
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`
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`STEPHANIE WOOD,
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` Plaintiff,
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` v.
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`CHIROPRACTIC CENTER, PA d/b/a
`WALDOBORO CHIROPRACTIC & SPA,
`P.A., d/b/a WALDOBORO CHIROPRACTIC
`& MASSAGE
`
` Defendant.
`
`
`COMPLAINT
`JURY TRIAL REQUESTED
`INJUNCTIVE RELIEF SOUGHT
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`JURISDICTION AND PARTIES
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`1.
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`2.
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`This action arises under the False Claims Act, 31 U.S.C. §§ 3729, et seq.
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`Stephanie Wood (“Ms. Wood”) is a United States citizen residing in the State of
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`Maine, County of Lincoln, Town of Waldoboro.
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`3.
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`Chiropractic Center, PA d/b/a Waldoboro Chiropractic & Spa, P.A., d/b/a
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`Waldoboro Chiropractic & Massage (“Waldoboro Chiropractic”) was a Maine business
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`corporation that had a place of business in State of Maine, County of Lincoln, Town of
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`Waldoboro.
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`4.
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`This Court has subject matter jurisdiction over Ms. Wood’s claim pursuant to 28
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`U.S.C. §§ 1331 and 1367.
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`JURY TRIAL REQUESTED
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`5.
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`Ms. Wood requests a trial by jury for all claims and issues for which a jury is
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`permitted.
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`

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`Case 2:21-cv-00113-NT Document 1 Filed 04/27/21 Page 2 of 13 PageID #: 2
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`FACTUAL ALLEGATIONS
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`6.
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`Waldoboro Chiropractic provided Chiropractic, Physiotherapy, Chiropractic
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`Acupuncture and Massage Therapy services to the public.
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`7.
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`8.
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`9.
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`Dr. Tillou is a Chiropractor and the owner of Waldoboro Chiropractic.
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`Ms. Wood began working for Waldoboro Chiropractic in October 2017.
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`Ms. Wood was the Office Manager and a Chiropractic Assistant.
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`10. Ms. Wood’s final rate of pay was $21 per hour. She worked 32-34 hours per week
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`prior to the COVID-19 pandemic.
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`11.
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`Dr. Tillou hired another Chiropractor, Matt Thomas, in January 2020.
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`12. Ms. Wood began to have concerns about billing issues after Dr. Thomas was
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`hired.
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`13.
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`Defendant submitted bills to Medicare as well as to private insurance companies.
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`14. Ms. Wood’s concerns included but are not limited to the following:
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`a. Dr. Tillou told Ms. Wood and Dr. Thomas that he was not charging enough.
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`Dr. Tillou told Dr. Thomas to include certain billing codes with every visit,
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`e.g., ultrasound of back. Dr. Thomas objected, and told Dr. Tillou that he
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`would not charge for a service or procedure he did not provide. Dr. Tillou told
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`Ms. Wood and Dr. Thomas, “I don’t care, bill for it anyway.”
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`b. When Dr. Thomas did not include the automatic billing codes on his bills, Dr.
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`Tillou would go back in and add the code before the bill was submitted.
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`c. Dr. Tillou billed for services allegedly provided by Dr. Thomas in December
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`2019, before he even started in January 2020.
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`d. Dr. Tillou would add comments to patients’ records who were being treated
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`for workers’ comp injuries to justify providing continued services that were
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`not needed. For example, Dr. Thomas would write that the patient was feeling
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`better. Dr. Tillou would change his note to indicate that the patient was not
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`feeling better and required additional treatment.
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`e. In February 2020, Ms. Wood talked to a claims adjuster about Dr. Tillou’s
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`practice of changing notes on patients’ records because the adjuster
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`questioned why the original notes (which the adjuster had seen) were
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`subsequently changed.
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`f. Dr. Tillou would omit or take out references to patients’ use of opioid
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`medications in notes provided to workers’ compensation insurance carriers.
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`g. Dr. Tillou would bill for services to the employer’s workers’ compensation
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`insurance carrier and to the patient’s private insurance, i.e., double bill.
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`h. At one point, Dr. Tillou was suspended from submitting bills to Medicare, so
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`she changed the dates on some bills to incorrectly reflect that service was
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`provided during a period of time before she was suspended, and submitted the
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`bills for payment.
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`15.
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`On April 2, 2020, Ms. Wood asked for and was granted permission to take time
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`off to avoid exposure to COVID-19.
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`16. Ms. Wood is at high risk because of the immune suppressant medication she takes
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`for rheumatoid arthritis and her rheumatologist advised her to stay at home if possible.
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`17.
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`Dr. Tillou gave Ms. Wood permission to take some time off. Dr. Tillou told Ms.
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`Wood to file for unemployment and write “lack of work” and “COVID-19” as the reason for
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`leaving.
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`18.
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`The plan was for Ms. Wood to come back to work and continue managing the
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`office. Dr. Tillou planned to retire in the fall. Dr. Thomas was going to take over the practice and
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`Ms. Wood was going to continue working there as the office manager.
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`19.
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`20.
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`At that time, Dr. Tillou did not ask Ms. Wood if account billing was up to date.
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`Dr. Tillou did not express any concerns about Ms. Wood’s job performance.
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`21. When Ms. Wood was hired, there were four employees handling administrative
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`tasks that, over time, were performed by only one person.
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`22. Ms. Wood told Dr. Tillou several times that she was one person doing the job of
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`four people and that she was doing her best.
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`23. While Ms. Wood was laid off in April 2020, the chiropractic office did not close.
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`24.
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`25.
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`Dr. Tillou and another Chiropractic Assistant kept working.
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`The business stopped providing massages until June 2020, when three massage
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`therapists returned to work.
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`26. While Ms. Wood was laid off due to COVID-19, Dr. Tillou brought someone in
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`to help in the office. The new office assistant handled the billing, reception, and scheduling.
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`27.
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`On May 4, 2020, Dr. Tillou reached out to Ms. Wood via text suggesting a
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`schedule upon her return. She wrote, in part:
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`“So I’m thinking your return to work schedule will be Tuesday and Thursday 9-2.
`You will continue on unemployment and just have to indicate the earnings on
`your weekly filing. You will be the only one in the building….”
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`28. Ms. Wood returned to work on about May 15, 2020.
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`4
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`29.
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`The new office assistant worked five days per week but her schedule did not
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`overlap with Ms. Wood’s schedule.
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`30. Work on accounts receivable and accounts payable had fallen behind during Ms.
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`Wood’s absence. There were problems that arose while she was absent.
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`31. Ms. Wood worked hard to bring the accounts current and fix problems.
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`32.
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`33.
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`Dr. Tillou did not raise any concerns about Ms. Wood’s job performance.
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`The plan moved forward to have Dr. Thomas take over the practice/business
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`when Dr. Tillou retired in the fall.
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`34. Ms. Wood had a good faith belief that Dr. Tillou was submitting false claims to
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`Medicare.
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`35. Ms. Wood discussed the false claims with Dr. Thomas.
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`36. Ms. Wood provided information to Dr. Thomas about the suspicious bills and he
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`reported their concerns to the Maine Department of Professional and Financial Regulation,
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`Office of Professional & Occupational Regulation, Complaint Division, on about June 2, 2020.
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`37.
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`Upon information and belief, Dr. Thomas quit his job with Defendant upon advice
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`of counsel because of the false claims.
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`38.
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`On about June 14, 2020, Ms. Wood received a text from Dr. Tillou stating she (Dr.
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`Tillou) received information that she (Ms. Wood) filed a complaint against her with the State.
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`39.
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`Dr. Tillou ended her initial message by saying, “Sorry it had to end this way.”
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`They exchanged the following messages:
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`Dr. Tillou:
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`So today I got a complaint to the licensing board from you and Matt
`[Thomas] accusing me of stuff that I did not do. I have never billed
`for a service that I did not do. I have never billed an appointment that
`did not happen. As far as I know we did not bill under Matt’s license
`due to CACQ? Problems. I have always wanted accuracy in patient
`accounts. I never changed any of his notes. Medicare does get billed
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`5
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`Case 2:21-cv-00113-NT Document 1 Filed 04/27/21 Page 6 of 13 PageID #: 6
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`Me:
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`Dr. Tillou:
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`Me:
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`for therapies rendered. So I will be responding to this. Sorry it had to
`end this way.
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`No I filed nothing with the board. What is ending.
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`Then Matt filed it in your name
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`Well, I didn’t file anything.
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`Dr. Tillou:
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`Is this your signature?
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`Me:
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`Dr. Tillou:
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`Me:
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`Dr. Tillou:
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`Me:
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`Yep
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`So you gave documentation to Matt and he filed against my license
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`He had questions I answered
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`Did you give him a written signed statement
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`With the info he asked for yes
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`40.
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`Dr. Tillou did not answer Ms. Wood’s question about what was ending, so the
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`following day, June 15, 2020, Ms. Wood asked her again. They exchanged these messages:
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`Me:
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`
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`You had mentioned yesterday you are sorry it had to end this way. I’ve
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`asked a few times and you’ve yet to clarify if you are ending my
`employment
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`Dr. Tillou:
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`You will remain on unemployment. Your letter is in the mail
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`41.
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`A day or so later, Ms. Wood received a letter from Dr. Tillou dated June 15, 2020,
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`that read: “Dear Stephanie; This is your notice of permanent termination of your job at
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`Waldoboro Chiropractic Center, PA. Debra Tillou, DC.”
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`42.
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`After Ms. Wood was terminated, she asked Dr. Tillou (through counsel) to
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`provide the reason for her termination in writing. Dr. Tillou replied in a letter dated July 15, 2020:
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`“…Stephanie was put back on unemployment, early June. The business will close in
`September.
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`“With the business permanently closing, the office is now under full audit on all
`patient accounts. There is a protocol for closing a medical office, and we are following
`those guidelines. There is evidence that the patient accounts are not correct, insurance
`rejected billing has pooled in Ability since 2019 waiting for corrections, claims were not
`processed right in rolling deductibles to patients and taking the claim out, claims were
`paid on by insurance and not posted so they remain open when they should have
`been closed, and many account adjustments, establishing evidence that Stephanie was
`not performing her job on office accounts, as expected.
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`“Stephanie never indicated that she was having problems with the duties of her Job
`Description as Office Manager. . . . She apparently did not like working for the business
`and one has to assume the financial misconduct listed above, was intentional.
`Stephanie was terminated on June 15 for not doing her job.” [Emphasis in the original.]
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`43.
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`44.
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`The stated reason for Ms. Wood’s termination is false and pretextual.
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`There were no complaints about her job performance or conduct before Dr. Tillou
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`learned that Ms. Wood assisted Dr. Thomas in reporting her false claims to the State agency that
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`regulates Chiropractors.
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`45.
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`There were no complaints about Ms. Wood’s job performance or conduct prior to
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`her protected activity.
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`46. Ms. Wood was terminated because she engaged in protected activity.
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`47.
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`Defendant told the Maine Human Rights Commission (“MHRC”) that Ms. Wood
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`and the rest of the staff had been on unemployment since the second week of March 2020. That
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`is misleading. Ms. Wood was laid off in April and returned to work on May 15, 2020. She
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`worked about two days per week, 5 hours per day, until she was fired on June 14, 2020.
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`48.
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`Defendant told the MHRC that the office was permanently closed due to COVID-
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`19. That is misleading. Waldoboro Chiropractic would have continued to operate under Dr.
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`7
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`Tillou’s management until she retired in the fall of 2020. The plan was for Dr. Thomas to take
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`over management of the practice and for Ms. Wood to continue managing the office. Those plans
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`changed as a direct and proximate result of Dr. Thomas and Ms. Wood reporting Dr. Tillou’s
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`fraudulent billing practices to the State.
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`49.
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`Plaintiff has established a False Claims Act retaliation claim in that (1) she
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`engaged in protected activity, (2) Defendant was aware of her protected activity and (3) she was
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`discriminated against because of the protected activity.
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`Protected activity
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`50. Ms. Wood had reasonable cause to believe that Dr. Tillou was committing
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`Medicare fraud and other illegal acts including billing for services that were not provided, billing
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`of unnecessary services, and misrepresenting dates of service. Federal regulations set forth the
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`minimum standards and types of chiropractic services that are billable. See
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`https://www.cms.gov/Regulations-and-Guidance/Guidance/Manuals/Downloads/bp102c15.pdf.
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`51.
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`It was reasonable for Ms. Wood to suspect that Dr. Tillou was committing
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`Medicare fraud given that Dr. Tillou had been suspended from submitting bills to Medicare in
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`the past and the behavior was fraudulent on its face.
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`52. Ms. Wood discussed the fraudulent billing issues with Dr. Thomas. They were
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`both concerned about the fraud and were motivated to make it stop.
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`53. Ms. Wood believed that Defendant was defrauding Medicare and Medicaid by
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`submitting claims and receiving payments that were inappropriate and fraudulent.
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`54.
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` Ms. Wood provided information to Dr. Thomas about the suspicious bills in an
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`effort to stop Defendant’s illegal conduct.
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`55.
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`Dr. Tillou did not promptly correct her illegal billing practices when Dr. Thomas
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`objected. For example, when Dr. Thomas told Dr. Tillou that he would not charge for a service
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`or procedure he did not provide, Dr. Tillou told Ms. Wood and Dr. Thomas, “I don’t care, bill for
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`it anyway.”
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`56.
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`Acting, in good faith, on his own behalf and on behalf of Ms. Wood, Dr. Thomas
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`reported their mutual concerns to a public body, i.e., the Maine Department of Professional and
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`Financial Regulation, Office of Professional & Occupational Regulation, Complaint Division, on
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`about June 2, 2020.
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`57. Ms. Wood took steps that could reasonably lead to a False Claims Act claim.
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`58. Ms. Wood reported what she reasonably believed to be fraudulent activity to a
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`supervisor.
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`59. Ms. Wood made efforts to stop what she reasonably believed to be Medicare
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`fraud.
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`Adverse action
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`60.
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`Dr. Tillou was notified of the complaint Ms. Wood and Dr. Thomas made to the
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`Department of Professional and Financial Regulation, Office of Professional & Occupational
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`Regulation on about June 14, 2020 and responded by promptly firing Ms. Wood.
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`Causal connection
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`61.
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`Timing supports a causal connection between Ms. Wood’s protected activity and
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`the adverse employment action in this case.
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`62.
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`In addition, Dr. Tillou admitted that she terminated Ms. Wood because of her
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`protected activity.
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`63. When Dr. Tillou told Ms. Wood she was fired, it was clear that the reason for
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`termination was due to Ms. Wood’s protected activity.
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`64.
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`On about June 14, 2020, Ms. Wood received a text from Dr. Tillou stating she
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`received information that she (Ms. Wood) filed a complaint against her with the State. Dr. Tillou
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`ended her initial message by saying, “Sorry it had to end this way.”
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`65.
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`A day or so later, Ms. Wood received a letter from Dr. Tillou dated June 15, 2020,
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`that read: “Dear Stephanie; This is your notice of permanent termination of your job at
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`Waldoboro Chiropractic Center, PA. Debra Tillou, DC.”
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`Legitimate, non-discriminatory reason
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`66.
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`One month later, after Ms. Wood was terminated, she asked Dr. Tillou (through
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`counsel) to provide the reason for her termination in writing.
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`67.
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`Dr. Tillou replied in a letter dated July 15, 2020 that (a) Ms. Wood remained on
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`unemployment, (b) the business was closing in September 2020, (c) she discovered that Ms.
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`Wood was not performing her job duties satisfactorily, and (d) she alleged that Ms. Wood
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`engaged in intentional financial misconduct against her business.
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`Pretext to cover up unlawful termination
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`68.
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`Dr. Tillou’s original reason for terminating Ms. Wood was overtly illegal. Dr.
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`Tillou’s later, stated reasons for termination are false and pretextual.
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`69.
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`First: The stated reasons for termination all occurred after Ms. Wood was fired.
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`They do not explain why Ms. Wood was fired.
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`70.
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`Second: Ms. Wood asked for, and received, permission to take time off beginning
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`on April 2, 2020 because she is at high risk for serious illness or death if she contracted COVID-
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`19. Ms. Wood was not responsible for office work that was performed (or not performed) while
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`she was out of the office. (Dr. Tillou brought someone in to help in the office. The new office
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`assistant handled the billing, reception, and scheduling.)
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`71.
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`Third: As of the time Ms. Wood was fired, the plan was for Ms. Wood to come
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`back to work and continue managing the office. Dr. Tillou planned to retire in the fall. Dr.
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`Thomas was going to take over the practice and Ms. Wood was going to continue working there
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`as the office manager.
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`72.
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`Fourth: At no time prior to her termination did Dr. Tillou ask Ms. Wood if
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`account billing was up to date. Dr. Tillou did not express any concerns about Ms. Wood’s job
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`performance or conduct before Dr. Tillou learned that Ms. Wood assisted Dr. Thomas in
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`reporting her fraudulent billing practices to the State agency that regulates Chiropractors.
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`73.
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`Fifth: On May 4, 2020, Dr. Tillou reached out to Ms. Wood via text suggesting a
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`schedule upon her return.
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`74.
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`Sixth: Ms. Wood returned to work on about May 15, 2020. The new office
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`assistant worked five days per week. Their schedules did not overlap. Work on accounts
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`receivable and accounts payable had fallen behind during Ms. Wood’s absence. There were
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`problems that arose while she was absent. Ms. Wood worked hard to bring the accounts current
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`and fix problems. Dr. Tillou did not raise any concerns about Ms. Wood’s job performance.
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`They continued moving forward as before with the plan to have Dr. Thomas take over when Dr.
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`Tillou retired in the fall.
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`75.
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`In sum, the subsequent “legitimate” reasons for Ms. Wood’s termination are false
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`and pretextual.
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`76.
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`Dr. Tillou terminated Ms. Wood from employment because she engaged in
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`protected activity in violation of the FCA.
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`77.
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`78.
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`COUNT I: FCA Retaliation
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`Paragraphs 1-76 are incorporated by reference.
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`The anti-retaliation provisions of the FCA make it unlawful to discharge, suspend,
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`threaten, harass, or in any other manner discriminate against an employee in the terms and
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`conditions of employment because of lawful acts done by the employee in an effort to stop a
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`violation of the FCA.
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`79.
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`Defendant’s conduct violates the FCA.
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`PRAYER FOR RELIEF
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`Plaintiff respectfully requests that the Court grant the following relief:
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`A.
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`Declare the conduct engaged in by Defendant to be in violation of her
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`rights;
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`B.
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`Enjoin Defendant, their agents, successors, employees, and those acting
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`in concert with it from continuing to violate her rights;
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`C.
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`D.
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`Order Defendant to reinstate Plaintiff or award front pay to Plaintiff;
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`Award lost future earnings to compensate Plaintiff for the diminution in
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`expected earnings caused by Defendant’s retaliation;
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`E.
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`F.
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`G.
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`H.
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`I.
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`J.
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`K.
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`Award equitable-relief for back pay, benefits and prejudgment interest;
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`Award compensatory damages in an amount to be determined at trial;
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`Award punitive damages in an amount to be determined at trial;
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`Award liquidated damages in an amount to be determined at trial;
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`Award nominal damages;
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`Award attorney’s fees, including legal expenses, and costs;
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`Award prejudgment interest;
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`L.
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`Permanently enjoin Defendant from engaging in any employment
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`practices that violate the FCA;
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`M.
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`Require Dr. Tillou to mail a letter to all employees notifying them of the
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`verdict against Defendant and stating that Defendant will not tolerate retaliation
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`in the future;
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`N.
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`Require that Defendant post a notice in all of their workplaces of the
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`verdict and a copy of the Court’s order for injunctive relief;
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`O.
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`Require that Defendant train all management level employees on the
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`protections afforded by the FCA;
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`P.
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`Require that Defendant place a document in Plaintiff’s personnel file
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`which explains that Defendant unlawfully terminated her because of retaliation;
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`and
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`Q.
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`Grant to Plaintiff such other and further relief as may be just and proper.
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`Dated: April 27, 2021
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`/s/ Chad T. Hansen
`Chad T. Hansen
`Attorney for the Plaintiff
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`EMPLOYEE RIGHTS GROUP
`92 Exchange Street 2nd floor
`Portland, Maine 04101
`Tel. (207) 874-0905
`Fax (207) 874-0343
`chad@employeerightslaw.attorney
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