Forty Two People Indicted In $4.6 million Medi-Cal Fraud

Posted on: December 16, 2009 at 8:24 p.m.

Los Angeles healthcare fraud is a major crime, and punishable by years in prison. With the federal government searching for more money to make up for the lack of taxes during the recession, the pressure will be on to find Los Angeles healthcare fraud fraud offenders.

During the summer of 2009, 42 people were indicted in connection to a Medi-Cal fraud that targeted disabled patients. The indictment charged the 42 people of conspiring to bill the state program for in-home licensed nursing services. According to law enforcement officials, the $4.6 million scheme used unlicensed individuals to provide in-home nursing care for disabled patients. Medi-Cal fraud is a form of healthcare fraud.

According to the United States Attorney’s office, about 75 patients, many of them children with cerebral palsy or developmental disabilities, were treated at home or at school by the unlicensed individuals who stole identities to pose as licensed nurses.

"We believe that this is the largest single case alleging Medi-Cal fraud ever filed in the state of California," said United States Atty. Thomas O’Brien.

Medicare Plus Home Health Providers, a Santa Fe Springs-based company run by Priscilla Villabroza, hired the unlicensed individuals from 2004 to 2007. O'Brien said that Villabroza billed Medi-Cal for nursing services and was reimbursed somewhere on average between $20 to $35 an hour per nurse, but she only paid her employees $8 to $12 an hour, keeping $4.6 million to herself.

Villabroza pleaded guilty in August 2008 to five counts of healthcare fraud. She faces up to 50 years in prison during her upcoming trial.

This is only one of long list of instances of Medi-Cal and healthcare fraud accusations in the state of California. Medi-Cal is part of the state's $34 billion Medicaid program that provides health care for more than six million people including the elderly, disabled and low-income families. According to law enforcement officials, some of the people that worked for Villabroza had training overseas and some had no training at all.

Although Villabroza pleaded guilty to several counts, there are also 41 other people that were indicted in July. Medi-Cal and Healthcare Fraud are both very serious charges and can carry tough sentences as well. While Villabroza pocketed a large percentage of the Medi-Cal reimbursements, others worked for only $8-12 an hour and are being charged as well. Although some of these employees knew exactly what they were doing, there are others who might have been completely in the dark about Villabroza’s actions.

If you have been accused of Medi-Cal and/or healthcare fraud in Los Angeles you need an experienced team of experts to help you minimize charges or have you charges dropped altogether. The Los Angeles Medi-Cal and Healthcare Fraud defense team at Kestenbaum, Eisner & Gorin LLP has over 50 years of courtroom experience and can help you defend yourself in court if you have been accused of Medi-Cal and/or Healthcare Fraud in Los Angeles. If you have been accused of Medi-Cal and Healthcare Fraud, be sure to contact us at 1-877-781-1570 or visit our website at www.keglawyers.com for more information.

Tagged as: los angeles health care fraud, los angeles white collar defense attorney

Kestenbaum Eisner & Gorin LLP has been recognized as one of the best U.S. law firms, based on the experience, professionalism, and ethics of its criminal defense lawyers and attorneys. We aggressively defend clients in all Southern California courtrooms on state and federal charges, including DUI, DMV, misdemeanor, felony, juvenile cases, in the following communities and courthouses.

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Forty Two People Indicted In $4.6 million Medi-Cal Fraud

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