Patient Recruiter for Family Healthcare Convicted of Medicare Fraud

Yesterday, Michelle Turner was convicted conspiracy to commit health care fraud and conspiracy to receive illegal kickbacks, as well as two counts of receiving illegal kickbacks. Turner, who is associated with the Family Healthcare durable medical equipment scam in Texas is 44 years old.

The four day trial against Turner follows the sentencing of four other individuals for this Medicare fraud scheme last week.

Prosecutors contended that Turner, who worked as a patient recruiter, setup a call center to cold call Medicare recipients, in an effort to promote arthritis kits provided by Family Healthcare.

According to court records, Family Healthcare was responsible for submitting fraudulent claims to Medicare for durable medical equipment. Their company primarily dealt with what they billed as arthritis kits, which they prescribed to Medicare Patients and had a cost of over three thousand dollars.

However, these kits were typically not medically necessary and did not include equipment that was conducive to treating senior arthritis or other senior health issues. For example, their arthritis kits often included heat pads and orthotic braces for the body.

Family Healthcare was, allegedly, responsible for over a million dollars in Medicare fraud, providing kickbacks to a number of individuals who provided Medicare recipients they could provide their arthritis kits to.

Turner allegedly used teenagers in his call center to make the cold calls to Medicare recipients. Under federal law, unsolicited marketing calls to Medicare recipients is illegal. He faces over 25 years in prison, if his charges were run concurrent.

Turner is the fifth person associated with the Family Healthcar Durable Medical Equipment Scam to be convicted in Federal court.

Florida Half Way House Manager Sentenced to Federal Prison for ATC Medicare Fraud

Butler Moultrie, who operated and managed a halfway house for recovering drug addicts in Fort Lauderdale Florida, was sentenced to almost 3 years in prison yesterday. This is part of the ongoing trials against those associated with the American Therapeutic Corporation(ATC) Medicare scam.

Moultrie is 46 years old and plead guilty to conspiracy to commit health care fraud. In addition to 33 months in prison, Moultrie was also sentenced to pay around $800,000 in fines and serve 3 years of probation after release.

As part of his plea agreement, Moultrie stated that he referred Medicare patients from his half-way house to American Therapeutic Corporation for their partial hospitalization program, or PHP, which was billed as an intense in-house mental health program. He went on to admit that he received kickbacks for the patients he referred, he was aware of the Medicare scam being preformed by ATC, and that he refferred the patients despite being aware that no doctor had prescribed this treatment.

The investigation into American Therapeutic Corporation and other companies, such as the American Sleep Institute, revealed a wide spread Medicare fraud scam, which included patient recruiters, doctors, and owners/operators of halfway houses in the Florida area. ATC, which s related to Medlink Professional Management Group, was responsible for, according to Federal Prosecutors, over $200 million in fraudulent Medicare billing.

Moultrie is the eleventh defendant to be tried as part of the American Therapeutic Corporation Medicare scam, with eight of these individuals being sentenced to prison. More trials are scheduled as the case against ATC and those involved with this Medicare fraud continues.

Four Sentenced in Texas Family Healthcare Group Medicare Fraud

Four Houston based individuals were sentenced to federal prison this week as part of the ongoing investigation into the Family Healthcare Group Medicare Fraud scam.

Mary Ellis and Caroline Njoku, who are both nurses aged 56 and 46 respectively, were sentenced to over five years in federal prison, as well as fines of over $400,000. Terrie Porter, who is 48, and Florida Holiday Island, who is 62, received 2 years in prison and 20 days in prison respectively, as well as both being responsible for a fine.

Ellis, who was convicted of three counts of receiving illegal kickbacks, conspiracy to pay kickbacks, and conspiracy to commit health care fraud, will need to serve an additional 3 years of probation after she completes her sentence.

Caroline Njoku, who was convicted of conspiracy to pay kickbacks and conspiracy to commit health care fraud, will need to serve a single year of probation after release, but was fined almost $650,000.

Porter, who was fined almost $500,000 will serve two years of probation after release. Island, who was only given 20 days in prison, was fined around $60,000 and must serve five months of house arrest, as well as 2.5 years of probation. She was convicted of receiving illegal kickbacks and conspiracy to receive kickbacks.

According to court records, Family Healthcare Group, which is a skilled nursing provider in Houston Texas, provided kickbacks to the defendants for providing Medicare account information of patients, who were then billed for nursing services that were not preformed or not required for medical reasons. The defendants allegedly submitted bills to Medicare and prescribed patient treatment plans that stated the Medicare recipients were in need of special in-home nursing assistance.

Both Njoku and Ellis, as indicated by evidence submitted during their trial, were responsible for falsifying the treatment plans.

In total around $5 Million in fraudulent billing is attributed to this fraud. In addition to the defendants above, two other defendants, including another nurse, have already been sentenced, with four additional defendants scheduled for trial.

About Family Healthcare Group

According to public records, Family Healthcare Group, INC. was registered in 2004 in Houston Texas. As of February 18, 2012 public records indicate they have not satisfied state franchise tax requirements and, as a result, is not in good standing with the State.

Both the director and chief executive are listed as Princewill Njoku, who it would stand to reason is related to Caroline Njoku, the nurse convicted in this case.

Another Pleads Guilty in Louisiana Durable Medical Equipment Scam

Yesterday, Rodney Taylor, who was a 45 year old patient recruiter for several healthcare companies in Louisiana, plead guilty to conspiracy to defraud the United States and conspiracy to commit healthcare fraud. He could face up to fifteen years in prison for both charges, as well as a fine.

Taylor was involved in the case reported earlier this week, which involved fraudulently billing Medicare for durable medical equipment, including things like electric wheelchairs and arm braces.

According to plea agreements, Taylor was involved with finding Medicare patient information and getting prescriptions for durable medical equipment, which he then sold to several companies owned by Jones. As part of court records from Jones trials, kickbacks were payed to Medicare recipients, doctors, and patient recruiters to help generate what amounted to over $20 million in fraudulent billings to Medicare.

Taylor allegedly provided prescriptions and patient information to Medical 1 Patient Services LLC , Healthcare 1 LLC, and Lifeline Healthcare Services Inc, which were involved with a Medicare fraud scheme, according to plea agreements, from 2004 until 2009.

Jones, along with her ex-husband and several others, are involved with many different businesses in Louisiana, with ties to Nevada as well. This includes a number of medical companies, several non-profit, religious businesses, and more.

Owner of Durable Medical Equipment Company Pleads Guilty to Medicare Fraud

On Friday, Chikenna D. Jones, the thirty-six year old owner of several Louisiana based durable medical equipment companies, plead guilty to conspiracy to defraud the United States and conspiracy to commit health care fraud.

She faces up to fifteen years in prison for her part in this Medicare Scam, which resulted, according to court records, in around $20 million in fraudulent Medicare Claims.

Jones, as per court records, admitted responsibility for fraudulently billing Medicare for Durable Medical Equipment from 2004 until 2009, allegedly paying patient recruiters kickbacks for providing Medicare patents that could be billed for unneeded medical equipment.

Allegedly, Henry Jones, who was her husband during this period, used information provided by patient recruiters, to bill Medicare for electric wheelchairs, arm and leg braces, and other types of durable medical equipment that require a doctors prescription.

As part of her plea agreement, Jones admitted that she was aware that the durable medical equipment was not required by the patients.

Jones is listed as the owner of a number of health care companies in Louisiana, including Medical 1 Patient Services LLC, Healthcare 1 LLC, Rose Medical Inc., and Lifeline Healthcare Services Inc.

According to public records, Medical 1 Patient Services LLC was founded in 2007 and Healthcare 1 LLC was founded in 2003. Both are related to Aldebaran Management Company, LLC.

Lifeline Healthcare Services was founded in 2004 and the chief operator is Chikenna Jones ex-husband, Henry Jones. The last reported filing for this company was in 2007.

Aldebaran Management Company is based out of Las Vegas Nevada and has a revoked business license, as per Nevada Public Records. It’s registered agent is another company, ACORN CORPORATE SERVICES, which was founded in 1993 and uses the same business address. Rose Medical LLC was listed as the business name of two companies in Nevada, however neither are tied directly to the other companies.

Extensive Business History in Louisiana

According to Louisiana public records, Chikenna D. Jones, Henry L. Jones, and Aldebaran Management Company have ties to a number of very diverse businesses, dating back to at least 2005.

This includes non-profits like Paris In the Spring Education Group and The Lifeline Ministry INC, and , as well as the Non-Profit Religious Corporation, Christian Fellowship Church Ministries, INC.

Other Registered Businesses Include:

  • Mindscape Learning Institute Inc
  • We Shoot First LLC
  • Shoe Laces LLC
  • Cancer Funding Group Inc
  • Homecare Cleaning Services LLC
  • Zoe Equipment Corporation INC
  • Darius’ Freight and Shipping LLC
  • Jairus’ Consulting and Property Management LLC
  • Global Wealth Management Group LLC

Based off the names of the businesses, the numerous business listings indicate that the Jones were involved in many different and diverse industries, including transportation, marketing, film-making, education, cancer research, education, religion, and more. These businesses were, for the most part, registered in Prairieville, Zachary, and Baton Rouge Louisiana.