Archive

November 11, 2016

– New York announced the arrest of attorney Anthony Cornachio, 74, of Garden City and charges against NRI Group, LLC (“NRI”) and Canarsie A.W.A.R.E., Inc. (“Canarsie”), which are Medicaid-enrolled drug treatment programs controlled by Cornachio. The Attorney General’s Medicaid Fraud Control Unit (“MFCU”) also charged three-quarter housing operators Yury Baumblit, 66, and Rimma Baumblit, 60, of Brooklyn, and their company Back on Track Group, Inc. In papers filed in New York City Criminal Court, Kings County and New York State Supreme Court, Kings County, prosecutors allege that Yury Baumblit and Rimma Baumblit, in exchange for payments from Cornachio’s companies, forced residents of their “three-quarter” homes to either face eviction or attend NRI and Canarsie regardless of the residents’ actual need for drug treatment services. During the course of this scheme, which dates back to at least 2013, Cornachio allegedly paid Back on Track Group, Inc. over $900,000.00 in illegal kickbacks. As a result of this kickback scheme, prosecutors allege that Cornachio, through NRI and Canarsie, submitted, and caused to be submitted, at least $1.7 Million in false claims for reimbursement to Medicaid. NY

October 21, 2016

New York-based hematology and oncology practice Hudson Valley Associates agreed to pay $5.31 million to settle charges of violating the False Claims Act by improperly waiving patient copayments and submitting claims for services it did not provide and/or were not permitted under the Medicare and Medicaid program rules.  The allegations originated in a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act.  The whistleblower will receive a yet-to-be-determined whistleblower award from the proceeds of the government's recovery.  DOJ (SDNY)

October 19, 2016

Elaine Davis and Pramela Ganji, the owner and medical director of New Orleans medical service company Christian Home Health Inc., were respectively sentenced to 96 months and 72 months in prison for their involvement in a $34 million Medicare fraud scheme.  According to evidence introduced at trial, Davis directed a massive fraud scheme through her company, using elderly and disabled Medicare recipients in New Orleans and adjacent communities to fraudulently bill Medicare for home health care services these patients did not require.  DOJ

October 7, 2016

Pilar Garcia Lorenzo, the owner of Tampa home health care agency Gold Care Home Health Services Inc., was convicted for her participation in a multimillion-dollar health care fraud and money laundering scheme.  According to evidence presented at trial, Gold Care submitted millions of dollars’ worth of false and fraudulent claims to Medicare for home health services that had never been provided and had not been legitimately prescribed by a physician resulting in $2.5 million in improper Medicare reimbursements.  DOJ

September 30, 2016

New York announced guilty pleas by Katia Donnelly and her durable medical equipment and supply store, Bennett Surgical Supply, Inc., for submitting thousands of false claims to Medicaid resulting in Medicaid paying them more than two million dollars over a six and a half year period. Donnelly admitted during her plea that she used the Medicaid identification numbers of Bennett Surgical customers to fraudulently bill for items she never purchased or delivered to them. She and her corporation plead guilty to Grand Larceny in the Second Degree, and it is expected that Donnelly will be sentenced to 2 to 6 years in State Prison. NY

September 26, 2016

New York announced that it has entered into a settlement agreement with First Call, Inc., to resolve allegations that it billed Medicaid for transportation services provided by unqualified drivers and without required documentation. The investigation settled False Claims Act allegations that are identified in the settlement agreement, pursuant to a qui tam lawsuit filed by whistleblower Thomas D. Ayers asserting claims under the New York False Claims Act. As a result of the settlement, the company will pay New York State $173,650.83 in restitution and damages pursuant to the New York False Claims Act. NY

September 20, 2016

New York announced the sentencing of licensed pharmacist Glenn Schabel, 55, of Melville, and his company, Glenn Schabel, Inc. in connection with a nation-wide scheme to sell diverted HIV medication to unsuspecting New Yorkers. Schabel was sentenced to 2-6 years in prison, and forfeited $5,456,267 to the New York State Medicaid Program. This sentencing is part of the Attorney General’s Medicaid Fraud Control Unit’s (“MFCU”) “Operation Black-Market Meds” investigation. NY

September 14, 2016

Healthmark Investment Trust, partial owner of Florida-based compound pharmacy QMedRx, agreed to pay $7.75 million to resolve allegations QMedRx violated the False Claims Act by billing the federal healthcare programs for prescriptions tainted within the meaning of the Anti-Kickback Statute.  The government is still pursuing penalties and fines from other owners and participants within QMedRx.  DOJ (MDFL)

September 12, 2016

Pennsylvania announced the arrest of a licensed professional counselor charged with submitting hundreds of fraudulent Medicaid claims in an alleged scheme that netted him more than $100,000 for counseling services that he never provided. Michael Clarence Johnston, 55, the former owner and operator of Vision Counseling Services in Brodheadsville, Monroe County, was charged with various criminal offenses following an investigation by the Office of Attorney General’s Medicaid Fraud Control Section. PA

September 7, 2016

Medical equipment supply companies U.S. Healthcare Supply LLC and Oxford Diabetic Supply Inc., along with their owners and presidents, agreed to pay more than $12.2 million to resolve allegations that they violated the False Claims Act by making unsolicited calls to Medicare beneficiaries to sell them durable medical equipment.  According to the government, the two companies created a fictitious company called Diabetic Experts Inc., which they used to make the unsolicited calls, and then submitted claims to Medicare for the equipment they sold in violation of the Medicare Anti-Solicitation Statute.  Whistleblower Insider