Whistle-blowers to receive $8.1 million in Redding Medical Center case
Sacramento Bee
Metro Staff

Published 9:42 a.m. PST Wednesday, January 7, 2004

The federal government announced Wednesday that it will give $8.1 million to Redding-area priest John Corapi and his colleague, Joseph Zerga, a Las Vegas accountant, under the federal False Claims Act based on their whistle-blower complaint alleging that unnecessary cardiac surgeries were being performed at Redding Medical Center.

According to a U.S. Department of Justice news release, the $8.1 million award will be paid to Corapi and Zerga out of a $54 million recovery by the United States in the civil case. The negotiated amount constitutes 15 percent of the total recovery and represents the statutory minimum for which whistle-blowers are generally eligible under the False Claims Act.

Payment is expected to be made within 30 days after the agreement between the United States and the whistle-blowers is signed.

In July 2002, Corapi and Zerga reported the alleged unnecessary procedures to the FBI, which launched an investigation. In November 2002, Corapi and Zerga filed under seal a False Claims Act complaint against Tenet Healthcare, RMC and physicians involved in the alleged fraud.

Corapi, a Catholic priest, was diagnosed by Dr. Chae Moon in Redding as being in need of immediate surgery. After receiving advice from five other doctors saying he was healthy, Corapi went to the FBI with his story.

No criminal charges have yet been filed in the case, according to the U.S. Justice Department officials. The investigation continues by the FBI, the Department of Health and Human Services and the Defense Criminal Investigative Service.