The former part owner of a home healthcare company and a nurse were arrested Jan. 31 and charged in connection with a $100 million healthcare fraud scheme, according to the U.S. Justice Department.
Faith Newton was part owner and operator of Chelmsford, Mass.-based Arbor Homecare Service from January 2013 to January 2017, and Winnie Waruru was a licensed practical nurse employed by Arbor. Prosecutors allege that the duo used Arbor to defraud MassHealth and Medicare of at least $100 million by committing fraud and paying kickbacks to get referrals, according to the Justice Department.
Specifically, prosecutors allege that Arbor billed payers for home health services that were never provided or weren't medically necessary. Arbor billed MassHealth for Waruru's skilled nursing visits, many of which she did not perform, according to the Justice Department.
Ms. Newton allegedly used laundered proceeds from the scheme to buy several homes and a Maserati and to fund investment accounts.
Ms. Newton and Ms. Waruru were each indicted on charges of conspiracy to commit healthcare fraud, healthcare fraud-aiding and abetting and conspiracy to pay and receive kickbacks. Ms. Newton was also indicted on charges of money laundering conspiracy and money laundering. Ms. Waruru was indicted on charges of making false statements and making false statements in a healthcare matter.