PHOTO:

Faith Newton. PIC BY COURTESY/FACEBOOK

By:

Jenna Fisher, Patch Staff

Posted:

Feb,27-2021 15:11:36

WESTFORD, MA__Two women, including one from Westford, were arrested Sunday and charged in connection with a $100 million home health care fraud scheme out of Chelmsford that targeted particularly vulnerable patients and using the money to buy five homes and fancy cars.

Faith Newton, 52, of Westford, and Winnie Waruru, 41, of Lowell, were each indicted on one count of conspiracy to commit health care fraud; one count of health care fraud--aiding and abetting; and one count of conspiracy to pay and receive kickbacks. Newton was also indicted on one count of money laundering conspiracy and seven counts of money laundering.

Waruru was also indicted on two counts of making false statements and one count of making a false statement in a health care matter. Newton and Waruru were arrested Jan. 31 and were set to appear in Boston Federal Court Monday.

Both worked for the Chelmsford-based Arbor Homecare Services, LLC. According to the indictment, from 2013 to 2017, Newton was part owner and operator of the home care business, while Waruru was a licensed practical nurse employed as a home health nurse at Arbor.

Prosecutors say Newton and Waruru conspired to use Arbor to defraud MassHealth and Medicare of at least $100 million by committing health care fraud and paying kickbacks to induce referrals. Newton then allegedly laundered the ill-gotten gains.

Prosecutors allege that Arbor, under Newton, 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.

According to court documents Newton and others developed employment relationships as way to pay kickbacks for patient referrals, regardless of medical necessity requirements at Arbor. They also entered sham employment relationships with patients' family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not happen, according to court documents.

The civil complaint alleged that Newton either directly or through Arbor, targeted particularly vulnerable patients who were low-income, on disability and suffering from depression or addiction.

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.

United States Attorney Andrew Lelling said Newton used the laundered proceeds of the $100 million scheme to buy five homes, a Maserati and to fund investment accounts, a lavish lifestyle and numerous financial transactions.

The civil forfeiture case seeks to forfeit to the United States five properties in Westford, North Andover, Chelmsford and Dracut and to forfeit the contents of 40 bank accounts and investments.

They face up to 10 years in prison and a fine of up to $250,000 for the charges of health care fraud, conspiracy to commit health care fraud, money laundering conspiracy and money laundering.

Source:

The Patch