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Summit BHC New Jersey LLC, doing business as Seabrook, has agreed to pay $19.75 million to resolve allegations that it violated the False Claims Act. The U.S. Attorney’s Office for New Jersey announced today that Seabrook unlawfully provided services to veterans and Medicaid recipients without the proper state license and submitted false claims to the Veterans Health Administration (VHA) and Medicaid.

Acting U.S. Attorney Alina Habba stated, “This resolution underscores our commitment to ensuring that veterans and Medicaid recipients receive the care they are entitled to and have paid for, in fully licensed and compliant facilities.”

The claims stem from a whistleblower, Jennifer Coulter, a former Seabrook employee, who brought attention to the facility’s unlawful practices. As part of the settlement, Coulter will receive approximately $3.5 million.

From January 1, 2022, to December 31, 2024, Seabrook operated its Cumberland County facility without a proper state license and billed the government for services it was not legally permitted to provide. To avoid detection, Seabrook took steps to hide veterans from state inspectors by scheduling outings during inspections.

Additionally, the facility failed to employ enough qualified and credentialed caregivers, using interns who were not adequately supervised. Seabrook falsely claimed to provide specialized care for veterans, while offering them the same services as other patients. The settlement revealed that Seabrook submitted false claims to the VHA and Medicaid for counseling sessions that did not meet the necessary service requirements to justify the full per diem rate.

Further investigation revealed that Seabrook also mishandled patient and employee records, including misreporting employees' credentials and documenting services that were not provided.

Seabrook has fully cooperated with the investigation, and the individuals responsible for these violations have been disciplined.

This case was investigated by the U.S. Attorney’s Office for the District of New Jersey, with David Dauenheimer and Paul Kaufman leading the prosecution. Seabrook is represented by Richard Westling of Epstein Becker & Green PC and Matthew Curley of Bass Berry & Sims PLC.

For further information on the case, please refer to Coulter et al. v. Seabrook House Inc., case number 1:23-cv-00451, in the U.S. District Court for the District of New Jersey.