Home Health & Hospice Week

Industry Note:

Another Conspirator Pleads Guilty In $24-Million Fraud Bust

A man who sold Medicare beneficiary information pled guilty to charges stemming from his role in a massive $24.7-million home health care fraud conspiracy, the Department of Justice announced on Feb. 22.

Clarence Cooper pled guilty to one count of conspiracy to commit health care fraud in the U.S. District Court for the Eastern District of Michigan. Cooper allegedly sold Medicare beneficiary information to the now defunct First Choice Home Health Care Services Inc. and Reliance Home Care LLC, as part of a scheme to bill Medicare for services that were not provided or not medically necessary, the DOJ reports.

From 2008 through May 2012, Cooper purportedly sold Medicare information of hundreds of beneficiaries, charging the two Detroit-area HHAs $200 to $300 per beneficiary, the DOJ says. The two HHAs billed Medicare for nearly $1 million worth of false claims using the beneficiary information that Cooper provided.

Cooper’s involvement was part of a larger scheme that defrauded Medicare of more than $24 million in claims for home health services, psychotherapy and other medical services, the DOJ reports. Cooper faces sentencing on July 23, where he could receive up to 10 years in prison and a $250,000 fine.

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