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The government is seeking to recoup funds as well as five properties allegedly bought with stolen funds.
On Monday, Feb. 1, Faith Newton, 52, of Westford, and Winnie Waruru, 41, of Lowell, were each indicted on counts of conspiracy to commit health care fraud; health care fraud - aiding and abetting; and conspiracy to pay and receive kickbacks, according to the U.S. Attorney’s Office, Massachusetts.
Newton was also charged with money laundering conspiracy and seven counts of money laundering.
Waruru was also charged with two counts of making false statements and making a false statement in a health care matter, the U.S. Attorney’s Office said.
According to court documents, from January 2013 through January 2017 (when Arbor went out of business), Newton was part owner and operator of Arbor Homecare Services LLC and Waruru was a Licensed Practical Nurse with Arbor.
It is alleged that Arbor, through Newton and others failed to train staff, billed for home health services that were never provided or were not medically necessary, and billed for home health services that were never authorized, the U.S. Attorney’s Office said.
Newton and others are accused of paying kickbacks for patient referrals regardless of medical necessity. They also allegedly entered into sham employment relationships with patients’ family members to provide care that was not medically necessary and routinely billed for fictitious visits that Newton knew did not happen.
In a separate civil complaint, Newton is also accused of targetting vulnerable, low-income people on disability and/or suffering from depression and/or addiction, the U.S. ATtorney’s Office said.
Waruru and Arbor allegedly billed MassHealth for Waruru’s skilled nursing visits, many of which she did not perform.
According to the indictment, Waruru and Arbor billed MassHealth for Waruru’s skilled nursing visits, many of which she did not perform. Waruru also passed cash payments from Newton to an Arbor patient to retain that patient.
Money that was allegedly stolen through the scheme, was used to purchase homes, a Maserati, fund investments, and partake in a lavish lifestyle, the U.S. Attorney’s Office said. The civil suit seeks the forfeiture of five properties, law officials believe were purchased with stolen money. The properties are in North Andover, Chelmsford, Dracut, and Westford. The U.S. is also seeking the forfeiture of 40 bank accounts and/or investments they believe were purchased with stolen funds.
If found guilty of the charges, the women each face sentences of up to 15 years in prison and fines.
Agencies involved in the investigation, arrest, and prosecution of Newton and Waruru include the U.S. Department of Health and Human Services, Office of the Inspector General, Internal Revenue Service (IRS), Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office.
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