US authorities have arrested and charged two women linked to a $100 million home health care fraud scheme. The authorities have also demanded forfeiture of five properties and 40 financial accounts involved in a related money-laundering scheme.
The authorities have charged the detainees Faith Newton and Winnie Waruru with conspiracy to commit health care fraud, aiding and abetting in health care fraud, and conspiracy to pay and receive kickbacks. The authorities have further charged Newton for money laundering and Waruru for making false statements.
During 2013-17, Newton co-owned and operated Arbor Homecare Services LLC while Waruru served as a Licensed Practical Nurse there. Newton and Waruru allegedly conspired to use Arbor to defraud MassHealth and Medicare of over $100 million. They did this through health care fraud and kickbacks for referrals. Newton then laundered the proceeds of the fraud to purchase real estate, fund investment accounts and lead an extravagant lifestyle.
For the healthcare fraud charges alone, the convicts may receive 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. They may further receive a harsher sentence and fine for other charges.
Source: US Department of Justice