According to the US Attorney’s Office, two Massachusetts women bought a Maserati and five properties after a year-long $ 100 million fraud program.
Faith Newton, 52, from Westford and Winnie Waruru, 41, from Lowell were arrested Sunday and charged with a conspiracy to commit health fraud, a number of health care fraud – aiding and abetting and one conspiracy – paying and receiving setbacks.
Newton was also charged with a number of money laundering conspiracies and seven money laundering cases. Waruru has also been charged on two cases where false statements were made and one case where a false statement was made on a health matter.
Authorities claim that from January 2013 through January 2017, this duo used Arbor Homecare Services, which Newton was a partner and where Waruru was a home nurse, to defraud MassHealth and Medicare for at least $ 100 million . Newton then washed the money, authorities said.
US prosecutors allege Newton and others billed for home health services that were never performed, were not medically necessary, and were not authorized.
Authorities also said Arbor Homecare Services used employment relationships to pay setbacks for patient referrals. The U.S. Attorney’s Office said it established relationships with patients’ family members to provide services that were not medically necessary and were routinely billed for fictitious visits that Newton knew did not take place.
Newton was aimed at particularly vulnerable patients with low incomes, disabilities and / or depression and / or addiction.
According to authorities, Waruru MassHealth has billed qualified care visits, many of which were missed. Waruru also passed cash payments from Newton on to an Arbor patient in order to keep that patient.
Authorities said Newton used the laundered money to buy several houses and a Maserati.
The government is seeking the loss of five properties in Westford, North Andover, Chelmsford and Dracut and the loss of the contents of 40 bank accounts and / or investments.
The healthcare fraud, healthcare conspiracy conspiracy, money laundering conspiracy and money laundering charges each see a prison sentence of up to 10 years, three years of custody release and a fine of up to $ 250,000 or double the money in the laundry .
The conspiracy to pay setbacks, make false statements, and make false statements in the healthcare sector calls for up to five years’ imprisonment, three years of custodial release, and a fine of up to $ 250,000 each.