The U.S. DOJ, District of Massachusetts issued a press release on February 1, 2021 concerning two women that were arrested and charged in connection with a home health care fraud scheme. The government also filed a civil action seeking forfeiture of five properties and 40 financial accounts and investments in a scheme to launder the ill-gotten gains.
Newton was part owner and operator of Arbor Homecare Services LLC (“Abor”). Waruru was a Licensed Practical Nurse employed as a home health nurse at Arbor.
It is alleged that both women engaged in a conspiracy to defraud MassHealth and Medicare of at least $100 million by committing health care fraud and paying kickbacks to induce referrals. Newton thereafter allegedly laundered the ill-gotten gains. More specifically, the government alleges that Arbor failed to train staff, billed for home health services never provided or were not medically necessary, entered sham employment relationships for kickbacks, and routinely billed for fictitious visits.
In addition to monetary penalties: (1) the charges of health care fraud, conspiracy to commit health care fraud, money laundering conspiracy and money laundering, each provide for a sentence of up to 10 years in prison; and (2) the charges for conspiracy to pay kickbacks and making false statements, each provide for a sentence of up to 5 years in prison.