Pacific Medical Buildings LLC (PMB), PMB Lakeway LLC, RD Development Partners LLC, Lakeway Management LLC, J&L Rush Family Partnership LP, Jeff Rush, and Brad Daniel have agreed to pay the United States $1.1 million to resolve allegations that they violated the False Claims Act by improperly helping to obtain a loan insured by the Federal Housing Administration (FHA) and receiving impermissible distributions of project funds for the development of Lakeway Regional Medical Center in Lakeway, Texas.

The FHA, part of the U.S. Department of Housing and Urban Development (HUD), insures loans used to build hospitals in underserved areas. The settling parties, along with several other individuals and entities, were involved in efforts to develop a rural hospital using an FHA-insured loan.

False Claims Act lawsuits can brought by either the government or by whistleblowers against parties that deliberately or in reckless disregard of the truth defraud the government. Under the False Claims Act liable parties must pay triple damages plus penalties. Whistleblowers may be rewarded with a percentage of the proceeds recovered by the government.

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