Home Health & Hospice Week

A high profile home care fraud case in the Chicago area has imploded due to prosecutorial misconduct.

During a five-week trial of Richard and Maribel Tinimbang, owners of Patients First Physical Therapy, it was discovered that government prosecutors failed to turn over grand jury transcripts of testimony by an IRS agent who was about to testify that the couple conspired to launder the proceeds of their illegal business, reports the Chicago Tribune. That led to the uncovering of more instances when prosecutors withheld grand jury testimony or misrepresented what witnesses told investigators.

The Tinimbangs and alleged co-conspirators faced charges alleging they paid kickbacks of up to $1,200 per patient for referrals and billed for services not rendered or not medically necessary between 2008 and 2014. The fraud involved three home health agencies in which the family had a stake — Donnarich Home Health Care, Josdan Home Health Care and Pathways Home Health Care, the Tribune reports. The couple used the fraud proceeds for items such as a 5,000-square-foot mansion, a small fleet of luxury SUVs and at least $1 million in Facebook stock.

Instead of guilty verdicts and stiff prison sentences for the $45 million scheme, the Tinimbangs were expected to plead guilty to low-level felony counts that call for less than a year behind bars (for Richard) and to a misdemeanor with no jail time at all (for Maribel), the Trib said. Nurse supervisor Monette Mojares was slated to plead guilty to one minor felony count and prosecutors agreed todrop the prosecution of patient recruiter Vivian Baldemor.

Several nurses and marketer Sherwin Cubelo previously pleaded guilty to their roles in the scheme. Cubelo admitted he received $300,000 in bribes and kickbacks from the Tinimbangs for patient referrals, according to the newspaper.