In an effort to boost funding from federal health programs, the AIDS Healthcare Foundation allegedly bribed employees and patients to refer other HIV-positive patients to the Foundation’s clinics and pharmacies.

Three former managers of the AIDS Foundation filed a lawsuit in Southern Florida. They claim that company had created an elaborate system of kickbacks that cheated Medicare and Medicaid out of over $20 million. The system began in California and soon spread to 12 other states.

The president of the AHF, Michael Weinstein admits his money-for-referrals system is part of the company’s business model. However, he claims that there is nothing wrong with that.

“Not only has AIDS Healthcare Foundation done nothing wrong, our pro-active approach to finding and linking HIV-positive individuals to lifesaving care and treatment is critical to stopping HIV in this country,” said Weinstein.

The organization is one of the country’s leading suppliers of medical care for people suffering from HIV or AIDS. Based in Los Angelos, California, attends over 400,000 patients across 36 countries. Additionally, the company recently launched a massive initiative to identify and treat people across the world who may not be aware that they are infected- a figure that may be as high as 25 million.

The managers who blew the whistle on the AHF are Jack Carrel, former director of public health at the foundation’s Southern bureau; Mauricio Ferrer, a former senior program manager at the Southern bureau; and Shawn Loftis, a former grants manager at the Southern bureau.

Since filing their claim, all three have been fired. Under the False Claims Act, their jobs should have been protected. In addition, the Act states that if the whistle blowers are suing on behalf of the government, a successful lawsuit entitles them to a portion of whatever money is recovered.

The AIDS Healthcare Foundation could not be reached for comment.