Home health company owner convicted in $100M fraud scheme

The part owner and operator of a home health company was convicted for her role in a $100 million Medicaid fraud scheme. 

Faith Newton, 56, of Westford, Mass., was found guilty of one count of conspiracy to commit health care fraud, one count of healthcare fraud, and three counts of money laundering, according to a July 22 Justice Department news release. The jury found her not guilty on one count of money laundering conspiracy.

From 2013 to 2017, Ms. Newton was the part owner and operator of Arbor Homecare Services, according to the release. The Justice Department said that Arbor, through Ms. 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 not authorized.

Arbor paid kickbacks for patient referrals, regardless of medical necessity, according to the report. The company also entered into sham employment relationships with patients' family members to provide home health aide services that were not medically necessary and routinely billed MassHealth for fictitious visits that Ms. Newton knew did not occur.

Ms. Newton's co-defendant, Winnie Waruru, pleaded guilty to her role in the scheme in September 2022, according to the release. She is scheduled to be sentenced Sept. 18. A sentencing date for Ms. Newton has not yet been scheduled.

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