Prosecutors accuse Chicago man of swindling Medicare out of $20 million

Prosecutors accuse Chicago man of swindling Medicare out of $20 million


By Associated Press

3:21 p.m. CDT, June 29, 2011

CHICAGO (AP) — Federal authorities say they've arrested the operator of two Chicago-area home health care businesses on charges he swindled Medicare out of at least $20 million over the last five years.

In a news release Wednesday, the U.S. Attorney's Office says Jacinto "John" Gabriel Jr. of Chicago was indicted on fraud and money laundering charges after he allegedly schemed with others to submit false claims for reimbursement for home health care services.

Real Estate In the release, the FBI alleges Gabriel and unidentified "co-schemers" used more than $5.5 million to buy jewelry, cars and real estate, gamble at casinos and bribe doctors in exchange for patient referrals.

The 43-year-old Gabriel is the only person charged in the alleged scheme.

 
Please read complete article at link below:
 
http://www.chicagotribune.com/news/local/sns-ap-il--medicarefraud-arrest,0,2949601.story?obref=obinsite

More links for this article:

http://fredericacade.wordpress.com/2011/06/29/press-release-jacinto-%E2%80%9Cjohn%E2%80%9D-gabriel-jr-operator-of-two-home-health-care-businesses-indicted-in-alleged-20-million-medicare-fraud-scheme/


Perpetual Home Health, Inc., based in Oak Forest, and Legacy Home Healthcare Services, which was located on the city’s north side. Both firms have ceased operating and no longer receive Medicare payments. Between May 2006 and January 2011, Perpetual submitted more than 14,000 Medicare claims seeking reimbursement for services allegedly provided to beneficiaries. As a result of those claims, Perpetual received more than $38 million in Medicare payments, making it one of the largest, if not the largest, recipients of Medicare payments for home health services in Illinois. Between 2008 and January 2011, Legacy submitted more than 2,000 claims for Medicare reimbursement and received more than $5 million.

More info on both facilities may be found here:

http://apps.ilsos.gov/corporatellc/CorporateLlcController 
 
Editor's note: It makes one wonder if this guy and his company are involved with the corrupt Probate Court of Cook County? Your Probate Shark always suspected the case management companies, guardian ad litems, and judges were in bed with the care providing companies that were joined at the hip with the Probate Court of Cook County.  Lucius Verenus, Schoolmaster, ProbateSharks.com