Corporate Compliance

Miami-area mental health company owners sentenced to prison for Medicare fraud

Compliance Monitor, December 14, 2011

A U.S. District Court judge sentenced the third member of a $205 million Medicare fraud scheme to 35 years in prison, according to a December 8 Department of Justice press release. U.S. District Court Judge James Lawrence King ordered Judith Negron, owner of American Therapeutic Corporation (ATC), to pay $87 million in restitution in conjunction with her co-defendants in addition to the prison term.

Negron’s co-defendants, Marianella Valera and Lawrence Duran, were previously sentenced to 35 and 50 years, respectively, for their participation in the scheme.

Negron, Valera, and Duran submitted false and fraudulent claims to Medicare through ATC by altering patient files and therapist notes to make it appear that patients presented for treatment at ATC, according to federal officials. Negron paid millions of dollars in kickbacks to patient recruiters in exchange for Medicare beneficiaries who did not qualify for the ATC programs.

Visit the Department of Justice website for more information.

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