judge using gavel

Ten defendants were arrested on Wednesday and will appear in Manhattan federal court for their roles in an alleged scheme “to swindle the managed healthcare system by billing for no-show cases,” Manhattan Acting U.S. Attorney Audrey Strauss said.

The indictment alleges that the defendants, all of whom either worked for or were associated with Brooklyn, NY-based home care agencies, defrauded Medicaid for home health and personal care services that were never provided.

The indictment alleges that the aides’ fraudulently obtained wages were often split between no-show aides and no-show patients.  In addition to allegedly paying kickbacks to no-show patients, no-show aides may have paid kickbacks to conspirators who referred no-show cases to aides at the agencies, Strauss said.   

“Now more than ever, the Medicare system is critical for so many Americans who depend on its services for their well-being,” Strauss said. “Conduct such as the alleged scheme today not only beleaguers the healthcare system, it unfairly penalizes those who depend on it most — the patients.”

The defendants are each charged with one count of conspiracy to commit mail, wire and healthcare fraud; one count of mail fraud; one count of wire fraud; one count of healthcare fraud; and one count of conspiracy to violate the Anti-Kickback Statute.