Owner of N.J. healthcare agency admits to $7 million fraud, bribery and tax evasion

NEWARK — The owner of a Linden home healthcare agency pleaded guilty to carrying out a multimillion dollar Medicaid fraud, bribery and other offenses that could lead to decades in prison, the office of U.S. Attorney for New Jersey Paul Fishman announced Monday.

Irina Krutoyarsky, 61, of Springfield, owner of HHCH Health Care, is scheduled to be sentenced in September after admitting she told the state's Board of Nursing that the aides she employed had completed required training and testing when in reality she charged the aides hundreds each for obtaining fraudulent credentials.

Krutoyarsky also billed Medicaid for aide visits that never occurred, in some instances charging for visits by aides who were on overseas vacations, working at other jobs or who were not in the area at the time. As part of the scheme, patients were also paid to back up claims of visits that never happened. All told, authorities estimate Krutoyarsky bilked Medicaid of $7 million.

Krutoyarsky also bribed a state Department of Labor employee who was working undercover with federal agents after the department received complaints in 2010 that employees were not getting paid overtime. The $10,000 bribe attempt was recorded, authorities said. A second bribe, for $15,000, was also caught on video the following year in an unrelated Department of Labor investigation.

Krutoyarsky has also pleaded guilty to tax evasion for failing to pay more than $907,000 in taxes on income she received between 2007 and 2011 from clients who were not eligible for Medicaid and paid cash for the company's services.

She faces up to 10 years in prison each for conspiracy to commit health care fraud, bribery and money laundering. She also faces five years on the tax evasion charge and must forfeit $7 million.

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Owner of N.J. healthcare agency admits to $7 million fraud, bribery and tax evasion