Two Massachusetts women — one a part owner and operator of Arbor Homecare Services LLC in Chelmsford, MA, and the other a licensed practical nurse employed as a home health nurse at Arbor Homecare — have been charged in connection with a $100 million home healthcare fraud scheme.
The indictment alleges that Faith Newton, the part owner and operator of Arbor Homecare, and Winnie Waruru, the practical nurse, conspired to use Arbor Homecare to defraud MassHealth and Medicare of at least $100 million for skilled nursing visits that never took place and for paying kickbacks to the Arbor patients, who never received services.
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. A civil action seeks forfeiture of five properties and 40 financial accounts and investments involved in a money-laundering scheme.
“The charges of health care fraud, conspiracy to commit health care fraud, money laundering conspiracy and money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering,” the Department of Justice said in a news release. “The conspiracy to pay kickbacks, make false statements and make false statement in health care matter each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000.”
