Macomb County Couple Sentenced for $5.5 Million Health Care Fraud and Tax Evasion Scheme

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Noli and Isabel Tcruz, operators of several Macomb County home health care companies, have been sentenced to prison for their roles in a $5.5 million health care fraud kickback scheme, tax evasion, and defrauding COVID-19 relief programs.

DETROIT, MICHIGAN — Noli and Isabel Tcruz, a married couple from Macomb County, Michigan, have been sentenced to lengthy prison terms for orchestrating a $5.5 million health care fraud scheme involving illegal kickbacks, tax evasion, and COVID-19 relief fraud. Noli Tcruz, 68, received a six-year prison sentence, while Isabel Tcruz, also 68, was sentenced to 38 months in prison. The couple's fraudulent activities involved multiple home health care companies that falsely claimed to provide legitimate medical services to Medicare beneficiaries.

Kickback Scheme Uncovered: Doctors Paid for Referrals

The Tcruzes’ scheme centered on paying illegal kickbacks and bribes to secure referrals for home health care services billed to Medicare. Two doctors, Dr. Terry Baul and Dr. David Calderone, previously pleaded guilty to accepting these bribes and have been ordered to pay over $3 million in restitution and forfeiture. Both physicians have been barred from participating in Medicare and other federal health care programs, underscoring the severe consequences of engaging in fraudulent medical practices.

“Paying kickbacks to induce referrals for medical services in federal health care programs is illegal and can lead to the delivery of unnecessary services, wasting valuable taxpayer funds,” stated Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The HHS-OIG, along with the IRS Criminal Investigation Division, played a critical role in uncovering the extent of the Tcruzes’ fraudulent activities.

Tax Evasion and COVID-19 Relief Fraud Add to Crimes

Beyond the health care fraud, the Tcruzes also evaded personal and business income taxes, failing to pay their obligations while continuing to engage in fraudulent activities. Following the shutdown of their last home health company in February 2020, Noli Tcruz further exploited the COVID-19 pandemic by committing fraud through federal relief programs. Using a family member's identity and business, Noli stole over $250,000 from the Small Business Administration (SBA) and the Department of Health and Human Services (HHS) pandemic assistance funds.

Charles Miller, Special Agent in Charge of the IRS Criminal Investigation, Detroit Field Office, emphasized the gravity of the couple’s actions: "Not only was blatant stealing of funds, allotted for the healthcare of Americans, committed; but U.S. Citizens were stolen from again when no tax was paid on any of the couple’s income."

Legal and Community Reactions: A Call for Accountability

U.S. Attorney Dawn N. Ison of the Eastern District of Michigan made it clear that her office remains committed to prosecuting fraud driven by greed. “Noli and Isabel Tcruz’s fraud harmed taxpayers and the government programs our tax dollars fund, including Medicare and COVID-19 programs,” Ison stated. “Health care professionals and providers have both an opportunity and a duty to lawfully help people, but we will not hesitate to pursue individuals like these defendants who breach those duties to line their own pockets.”

The Tcruzes’ sentences reflect a broader crackdown on health care fraud, particularly schemes that abuse federal health care programs and pandemic relief efforts. Special Agent Mario Pinto reiterated the HHS-OIG’s commitment to collaboration with law enforcement partners to ensure accountability for such unlawful activities.

Ongoing Efforts to Combat Health Care Fraud

The case against the Tcruzes was prosecuted by Assistant U.S. Attorney Andrew J. Lievense, with the investigation led by special agents from the IRS Criminal Investigations Division and the HHS-OIG. The successful prosecution serves as a stark reminder of the vigilance required to protect public funds from fraudulent schemes.

Authorities continue to urge the public to report suspicious activities involving health care fraud and COVID-19 relief fraud. The enforcement actions against the Tcruzes signal a continued effort by federal agencies to root out fraud in health care and other critical public programs, safeguarding taxpayer dollars and the integrity of vital services.

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