A behavioral therapist has taken legal action against his former employer, accusing them of falsifying work hours to secure government reimbursements and retaliating against him when he attempted to expose the alleged fraud. Christopher Hendrix filed a complaint in the United States District Court for the Northern District of Illinois on October 2, 2024, against New Star, Inc., and its successor entity Sertoma Star Services, Inc.
The case revolves around allegations that New Star, Inc., a non-profit organization providing social services funded by state and federal sources, including Medicaid, engaged in fraudulent practices. Hendrix claims that his supervisor at New Star knowingly falsified his work hours to misrepresent them across multiple facilities to avoid accruing overtime pay at any single location. This manipulation allegedly allowed New Star to submit false claims for reimbursement from both the State of Illinois and the federal government. Hendrix reported these discrepancies to his supervisor on January 21, 2023, expressing concern over what he believed were violations of the False Claims Act (FCA) and the Illinois False Claims Act (IFCA).
In response to his complaint about these practices, Hendrix alleges that New Star retaliated by significantly reducing his work hours from approximately 45-58 hours per week to less than 22 hours per week. Despite efforts to resolve this issue internally and offering additional availability for work, no resolution was forthcoming. The reduction in hours rendered his employment financially unsustainable, leading Hendrix to resign on February 8, 2023—a move he describes as a constructive discharge due to intolerable working conditions.
Hendrix's lawsuit accuses New Star of violating both federal and state laws prohibiting retaliation against employees who oppose fraudulent activities. He asserts that New Star's actions constituted discrimination under the FCA (31 U.S.C. § 3730(h)(1)) and IFCA (740 ILCS 175/4(g)(1)). As part of his legal action, Hendrix seeks reinstatement with seniority status intact, double back pay with interest, compensation for damages incurred due to discrimination—including attorney fees—and any other relief deemed appropriate by the court.
The complaint also holds Sertoma Star Services liable as a successor entity following its merger with New Star in October 2023. The merger saw Sertoma assume liabilities necessary for uninterrupted business operations while maintaining management structures from New Star.
Representing Christopher Hendrix is attorney Nicholas Kreitman from Kreitman Law LLC based in Chicago. The case has been assigned Case ID: 1:24-cv-09326 but does not list specific judges presiding over it at this time.