A federal investigation has led to 11 arrests in a large-scale Medicaid fraud scheme involving two for-profit home health businesses, announces the New Jersey U.S. Attorney’s Office. The defendants are facing a myriad of charges, including health care fraud, money laundering and bribery.
"Today’s arrests are the result of a four-year investigation into a sophisticated scheme, involving multiple layers of fraud, money laundering and bribery, in order to defraud the New Jersey Medicaid program of millions of dollars," Federal Bureau of Investigation acting special agent in charge for Newark David Velazquez said in the Feb. 7 announcement.
Along with nine other conspirators, HHCH Health Care Inc. owner Irina Krutoyarsky and People Choice Home Care Inc. owner Paul Mil allegedly defrauded Medicaid by submitting claims for services not actually provided and obtaining fraudulent home health aide certifications for employees and others. Additionally, the HHA owners purportedly used illegal aliens and non-certified individuals to provide home health aide services and erroneously billed Medicaid for those services.
Krutoyarksy also allegedly bribed a New Jersey Department of Labor employee on two occasions to halt wage-and-hour investigations into HHCH and People Choice. But unbeknownst to Krutoyarsky, the DOL employee was cooperating with the FBI.
The defendants face 20 years in prison and a $250,000 fine for each count of conspiracy to commit health care fraud; 10 years in prison and a $250,000 fine for each bribery charge; 20 years in prison and a $500,000 fine for the conspiracy to commit money laundering charges; and five years in prison and a $250,000 fine for the charges of conspiracy to unlawfully structure financial transactions.
