Conviction in multi-million dollar health care fraud

BOSTON, Mass. (WWLP)– The owner of a health care company was convicted for health care fraud in a Boston federal court Friday.

Faith Newton, age 56 of Westford, was a part owner and operator of Arbor Homecare Services LLC from January 2013 to January 2017. She and others engaged in a conspiracy to use Arbor to defraud MassHealth of at least $100 million.

According to prosecutors, Arbor failed to train staff, billed for home health services that were never provided or were not medically necessary and billed for home health services that were not authorized. They were also accused of paying kickbacks, created fake employment relationships with patients’ family members to provide home health aide services that were not medically necessary and billed for visits that did not occur.

Additionally, Newton was accused of laundering the illegally gained money to buy a house and a Maserati motor vehicle. She was arrested and charged with co-defendant Winnie Waruru in February 2021.

Newton was convicted one count of conspiracy to commit health care fraud, one count of health care fraud, and three counts of money laundering. The jury found the defendant not guilty on one count of money laundering conspiracy. Sentencing will be scheduled at a later date.

“Ms. Newton deliberately orchestrated a scheme to defraud MassHealth and took advantage of her patients and their families in the process. She chose to violate the trust of government agencies and the broader community to treat herself to million-dollar cash bonuses, a lavish house and a Maserati.   This conduct is unacceptable, and she will now pay the price for her choices,” said Acting United States Joshua S. Levy. “Newton billed for countless patient visits that never happened or were unnecessary. Our office is committed to protecting patients and our health care system from fraud and deception, and we will continue to hold those illegal actors accountable for their actions.”

“Newton orchestrated a massive $100 million health care fraud scheme that targeted the Medicaid program, funding her lavish lifestyle at the expense of the American taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Today’s guilty verdict underscores the commitment of HHS-OIG and our partners to protecting the integrity of our federal health care system, and it should also serve as a stern warning to criminals who contemplate engaging in similar illegal schemes.”

“Faith Newton’s flagrant greed and theft orchestrated through her healthcare fraud scheme is disgraceful.  The jury’s verdict further demonstrates IRS-CI’s commitment to not only protecting the America taxpayers but also the most vulnerable of citizens,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, Boston Field Office. “By stealing from MassHealth, Newton not only stole from federally-funded programs and taxpayers, but she then used those proceeds to fund a lavish lifestyle for herself.  As a direct result of Newton’s scheme, these programs had fewer available funds to assist the individuals who truly needed the help.”

“As Faith Newton’s greed and wealth increased, her elaborate $100 million home health care fraud scheme collapsed. For years, her company billed taxpayers for home health services they did not provide, were not authorized, or were not medically necessary. She paid kickbacks, laundered illegal proceeds, and even bought a Maserati,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Our health care system is under constant attack by fraudsters who have pilfered billions of dollars from Medicare and other health care benefit programs. Today’s verdict should be a warning to others that committing healthcare fraud will not be tolerated.”

Newton’s previous trial in June 2023, ended in a mistrial during jury deliberations July 2023.

Newton could face a sentence of up to 10 years in prison for each of the charges of health care fraud, conspiracy to commit health care fraud, and money laundering, as well as three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering. Her sentencing will be scheduled at a later date.

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