The part-owner and operator of a Massachusetts-based home health company and a licensed practical nurse are accused of falsely billing for home health services that were never provided, including skilled nursing visits, in an $100 million fraud and money laundering scheme.
Faith Newton, 52, and Winnie Waruru, 41, both of Massachusetts, were indicted on conspiracy to commit healthcare fraud, pay and receive kickbacks, and aiding and abetting, the U.S. Attorney’s Office District of Massachusetts announced Monday.
Newton served as the part owner and operator of Arbor Homecare Services LLC in Chelmsford, MA, while Waruru worked as a home health nursing for the operator.
The Department of Justice alleged that Arbor, through Newton, failed to train staff, and billed for home health services that were either not provided, medically unnecessary or not authorized. Newton also allegedly developed sham employment relationships to pay kickbacks for patient referrals from 2013 to 2017.
Waruru is accused of billing the state’s Medicaid program MassHealth for skilled nursing visits that she never performed, and for passing cash payments from Newton to an Arbor patient in order to retain their business. The scheme in all cost MassHealth and Medicare at least $100 million, according to the DOJ.
“Newton allegedly used the laundered proceeds of the $100 million scheme to purchase multiple homes and a Maserati and to fund investment accounts, a lavish lifestyle and numerous financial transactions,” the agency said.
Newton was also indicted for seven counts of money laundering and one count of money laundering conspiracy. Waruru was also indicted on two counts of making false statements and one county of making false statements in a healthcare matter.
For additional coverage, visit McKnight’s Home Care Daily.
