Carolinas Verdicts

Find out about the most important recent North and South Carolina cases, selected by VerdictSearch editors. Coverage includes Gaston, Mecklenburg and Wake counties in North Carolina and Charleston, Horry and Richland in South Carolina. Subscribe to VerdictSearch Carolinas for access to all Carolinas verdictsPricing Options

Fraud – Food Stamps – Settlement

Amount:

$62,000

Type:

Settlement

State:

North Carolina

Venue:

Mecklenburg County

Court:

Mecklenburg County, United States District Court, Charlotte

Case Type:

Fraud – Government – False Claims Act

Case Name:

United States of America v. Ladybug Family Restaurant, Inc., Dionne Nichelle Garris, Retha Kendall Lindsay, Charmaine Simone Lindsay and Demetris Kendall

Date:

January 24, 2013

Parties

Plaintiff(s):

United States of America

Plaintiff Attorney(s):

Anne M. Tompkins;
;
Charlotte,
NC,
for
United States of America

Defendant(s):

Ladybug Family Restaurant, Inc., Dionne Nichelle Garris, Retha Kendall Lindsay, Charmaine Simone Lindsay and Demetris Kendall

Defense Attorney(s):

Jonathan Ferry;
;
Charlotte,
NC,
for
Ladybug Family Restaurant, Inc., Dionne Nichelle Garris, Retha Kendall Lindsay, Charmaine Simone Lindsay and Demetris Kendall ■ Richard Lamb Brown;
;
Monroe,
NC,
for
Ladybug Family Restaurant, Inc., Dionne Nichelle Garris, Retha Kendall Lindsay, Charmaine Simone Lindsay and Demetris Kendall

Facts:

The United States of America filed a lawsuit against a restaurant and four of its employees for violation of the False Claims Act with regard to the use of food stamp funds to purchase items for the restaurant. The parties entered into a $62,000 settlement to resolve the lawsuit. The federal government offers food stamp assistance to eligible lower income families through the Supplemental Nutrition Assistance Program (SNAP). The government provides EBT cards to the recipients, which are used like debit cards. Funds are placed on the cards in accordance with the specified eligibility of each recipient. Plaintiff United States of America conducted an investigation into the use of certain EBT cards. According to plaintiff, the investigation revealed that four employees of Defendant Ladybug Family Restaurant, Inc. fraudulently applied for and received SNAP benefits, which they then used at least 49 times between August 2011 and June 2012 to purchase bulk meat and other supplies for the restaurant. The employees were Defendants Dionne Nichelle Garris, Retha Kendall Lindsay, Charmaine Simone Lindsay and Demetris Kendall. Plaintiff alleged that defendants’ actions were in violation of the False Claims Act. The settlement agreement entered into by the parties stated that Defendants Ladybug Family Restaurant and Retha Kendall Lindsay were truly and justly indebted for $21,116 in damages to the United States government and $40,884 in civil penalties under the False Claims Act. The claims against the other defendants were to be dismissed upon entry of the court’s Final Order.

Injury:

Fraudulent use of Supplemental Nutrition Assistance Program (SNAP) benefits, in violation of the False Claims Act.

Result:

$62,000 including $21,116 in damages and $40,884 in civil penalties under the federal False Claims Act.

Trial Information:

Judge:

Graham Mullen