Detroit Home Health Owner Sentenced in $11M Fraud Scheme
The owner of a Detroit-area home health agency will serve 120 months in prison for his role in a $11 million Medicare fraud scheme.
Chiradeep Gupta, 39, a physical therapist and part-owner of the Oak Park, Michigan-based All American home health agency, was found guilty of one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three substantive counts of money laundering.
Gupta and his co-conspirators caused the submission of false and fraudulent claims to Medicare via All American and Patient Choice, another home health company based in Oak Park, according to evidence presented at trial as reported by the Department of Justice (DOJ).
Both of the home health companies were purported to provide skilled nursing and physical therapy services to Medicare beneficiaries in the greater Detroit area.
Evidence revealed that Gupta and his co-conspirators used patient recruiters who paid Medicare beneficiaries to sign blank documents for physical therapy services that were either never rendered or were medically unnecessary.
Physical therapists and physical therapist assistants then provided through contractors, including two owned by Gupta, created fake medical records using the patients’ blank, pre-signed forms obtained by the patient recruiters.
Trial evidence also showed that Gupta doctored and directed the doctoring of these fake patient files, which he then laundered the proceeds of the fraud through multiple shell companies.
Gupta was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan.
In addition to his prison term, Gupta will serve three years of supervised release and was ordered to pay more than $10 million in restitution.
Written by Jason Oliva