The owner and managers of a medical transportation company accused of defrauding one of the largest insurers in Massachusetts of $19 million pleaded not guilty Monday in Worcester Superior Court, according to a WCVB report.
Massachusetts Attorney General Maura Healey said in a statement last month that Westminster, Mass.-based Rite Way repeatedly billed MassHealth, the state's combined Medicaid and State Children's Health Insurance Program, for transportation services that were never provided. The company allegedly made claims for individuals who were hospitalized in inpatient settings, no longer used the company's services, or were deceased on the claimed dates of service. The purported fraud took place between April 2011 and September 2015.
"We allege that in order to rack up millions of dollars in payments from the state, this company orchestrated a massive false billing scheme for transportation services that they never provided or were not necessary," AG Healey said at the time.
Rite Way, until it ceased operations in 2015, was a fee-for-service transportation company that provided MassHealth members with non-emergency transportation. The company, along with its owner Michael Davini, and former managers Gary Carbonello, Dwayne Pelkey and Lynn Maguire were indicted in October. Mr. Davini, Mr. Carbonello, Mr. Pelkey and Ms. Maguire were all indicted on charges of larceny over $250 and false Medicaid claims, according to a report published on MassLive.com.
According to the report, Mr. Davini and Mr. Carbonello were also accused of taking kickbacks. Prosecutors said they paid existing clients up to $50 in cash and gift cards to companies including Visa and Dunkin' Donuts in exchange for referring new clients, the report states.
The AG's Office also alleges Ms. Maguire committed perjury by making false statements during her testimony before a Worcester County Grand Jury investigating this matter.
But Mr. Davini denied wrongdoing by himself, his managers and his company, and claims they never submitted false billing information to the state, according to WCVB.