Enforcement:
HHAs Burned By Fraud Spotlight
Published on Thu Feb 19, 2004
MD owner to serve two years in prison while MI owner could face 20.
Beware trying to wear one too many hats with Medicare - it may cost you all of them. William C. Geist, Jr., owner of a Staff Builders Inc. home health franchise, as well as Sierra Mountain Enterprises Ltd., allegedly used his franchises to steal at least $250,000 from Maryland Medicaid. Staff Builders' home care business is now Tender Loving Care Health Care Services. Geist broke related-party rules by purchasing medical supplies for the Staff Builders franchise from his other company, without disclosing ownership - then billing Medicaid for the 40 percent mark-up. Geist also allegedly misrepresented the number of employees working for Staff Builders by adding the names of employees who worked at his other companies to Staff Builders' time sheets. Geist got better reimbursement from Medicaid on one hand, while making his other company more profitable. The scheme unraveled when employees noticed the wrong company was issuing their checks. Geist, who has already paid the $250,000 owed, has been sentenced to 27 months in prison plus five years probation, Attorney General J. Joseph Curran, Jr. reports. Geist and his companies will also have to cough up state penalties and investigative costs totaling nearly $1.5 million.
Not the Same Kind of Home Care Meanwhile, a Michigan HHA owner, her husband and the HHA pled guilty Feb. 10 to conspiracy to commit mail and health care fraud, reports U.S. Attorney Margaret M. Chiara. Elena Szilvagyi, owner of Prime Care Services Inc., and David Szilvagyi "admitted that they passed some of the costs of constructing their home in Clarkston, Michigan" to Medicare via false cost report statements, according to Chiara. The Szilvagyis will be sentenced May 11 and could face 20 years in prison and a $250,000 fine. Prime Care faces a possible $500,000 fine and 20 years probation, Chiara says.