Feds Say Clinics Paid Off South Florida ALFs

A Miami couple sent to prison for decades could never have carried out one of the nation's biggest healthcare scams without assisted-living facilities and halfway houses supplying them scads of residents covered by Medicare, authorities say.

Now, the Justice Department has charged 10 residential operators in a first-ever Medicare investigation into people who prosecutors say pocketed bribes for providing patients with substance abuse problems to mental-health clinics owned by Larry Duran and Marianella Valera.

Miami-based American Therapeutic Corp. — owned by Duran and partner Valera, who were recently sentenced to 50 and 35 years in prison, respectively — was at the center of an elaborate plot to fleece $200 million from the taxpayer-funded Medicare program.

Medicare paid American Therapeutic, with seven clinics in South Florida and Orlando, $83 million over the past decade for group-therapy sessions that could not have helped people with drug and alcohol addictions, Justice Department lawyers say. Patients with drug addictions received treatment for mental illnesses they didn't have, such as bipolar disorder. In many other instances, no treatment was provided at all.

Last week, the controversy of ALF and halfway house operators suspected of taking kickbacks for Medicare patients dominated part of a state task force's hearing in Miami-Dade County on abuse and neglect in the industry.

So far in the federal prosecution, four residential operators in the Fort Lauderdale area have pleaded guilty to healthcare fraud. Other defendants are expected to follow their example to avoid jury trials and potentially lengthy prison sentences, according to sources familiar with the case.

Those convicted in recent weeks: Natalie Maria Evans, Irene Trematerra, and Robert and Nikki Jenkins, who collectively ran seven halfway houses. Each operator was paid $15 to $30 daily for each patient they sent to American Therapeutic's clinics, which submitted millions of dollars in false claims as a result, court records show.

The Medicare patients were pawns in the scheme, receiving little to no compensation, according to some patients interviewed by The Miami Herald.

Evans, who pleaded guilty to defrauding Medicare and faces up to 10 years in prison, was president of Vision of Hope Recovery. The company operated five halfway houses in Fort Lauderdale.

Full Article and Source:
Feds Say Clinics Paid Off South Florida ALFs