Wednesday, October 28, 2020

Home care worker found guilty for role in $7 million Medicare fraud scheme


A federal jury found a Chicago woman guilty today for her role in a scheme to defraud Medicare of approximately $7 million between 2011 and 2017.

After a four-day trial, Angelita Newton, 42, was found guilty of one count of conspiracy to commit health care fraud and wire fraud.   Sentencing has been scheduled for Oct. 13, 2020 before U.S. District Judge Virginia Kendall of the Northern District of Illinois, who presided over the trial.

According to evidence presented at trial, from approximately 2011 to 2017, Newton worked at Care Specialists, a home health company based in Chicago, Illinois, and owned by Ferdinand Echavia, 46, and Ma Luisa Echavia, 44, both of Chicago.  Newton was the Echavias’ employee and personal assistant.

In that role, Newton conspired with the Echavias and others to submit claims to Medicare for unnecessary home health services for unqualified patients, or for visits that did not happen as billed, the evidence showed.

- Advertisement -

Newton created and completed visit notes and other documents purporting to reflect nursing services purportedly rendered by Ferdinand Echavia with the knowledge that he was not actually providing the services.  Newton was aware that Ferdinand Echavia was making cash payments to patients, which Newton knew to be illegal, the evidence showed.

The evidence at trial showed that between 2011 and 2017, Medicare paid Care Specialists approximately $7 million for home health care services.

Three other defendants have been charged in connection with the fraud at Care Specialists.  Ferdinand Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 28, 2020, and is awaiting sentencing.  Ma Luisa Echavia pleaded guilty to conspiracy to commit health care fraud and wire fraud on Jan. 29, 2020, and is awaiting sentencing.  A former nurse at Care Specialists, Reginald Onate, 31, of Aurora, Illinois, pleaded guilty to one count of conspiracy to commit health care fraud, and is awaiting sentencing.

This case was investigated by the FBI and HHS-OIG.  Trial Attorneys Leslie S. Garthwaite and Patrick Mott of the Criminal Division’s Fraud Section are prosecuting the case.  Former Trial Attorney Jessica Collins of the Fraud Section previously handled the prosecution.

- Advertisement -

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John R. Lausch Jr. of the Northern District of Illinois, Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office and Special Agent in Charge Lamont Pugh III of the United States Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Division Office made the announcement.

Original article on


Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Brother of ex-Pakistan PM Nawaz Sharif jailed for money laundering

Pakistan Muslim League-Nawaz (PML-N) chief and Opposition Leader in the National Assembly Shehbaz Sharif was sent to jail on Tuesday in a money laundering...

EU takes legal action against Cyprus and Malta over investment for citizenship scheme

The European Union’s executive said on Tuesday it was launching legal action against Cyprus and Malta over their investor citizenship programmes, also known as...

Operators of fake theology school accused of stealing $12 million in student aid

Six people from three states are charged with defrauding $12 million from federal student aid programs by allegedly enrolling students into a theology school...

Indonesia sentenced stockbroker to life over fraudulent investment scheme

Renowned stockbroker Benny Tjokrosaputro was sentenced to life by the Jakarta Anticorruption Court on Monday evening for his role in a major graft scandal...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks