The owner and vice president of Wayne County Therapeutic in Livionia, Mich., were convicted by a federal jury Tuesday for their participation in a $23 million Medicare fraud scheme, according to a news release from the United States Department of Justice.
Owner Bernice Brown was found guilty of one count conspiracy to commit healthcare fraud and 10 counts of healthcare fraud, while vice president Daniel Smorynski was found guilty of one count conspiracy to commit healthcare fraud and six counts of healthcare fraud.
According to evidence at the trail, WCT claimed to be an outpatient physical and occupational therapy clinic. Ms. Brown purchased fake patient files from non-enrolled contractor therapists, who paid Medicare beneficiaries kickbacks in return for the information and false documentation. Ms. Brown and Mr. Smorynski then billed Medicare for the services listed in the files, even though the services were never performed by WCT staff.
In Jan. 2006, Congress enacted a cap on physical and occupational therapy services. Further trial evidence showed that Ms. Brown and Mr. Smorynski began to submit fraudulent claims for psychotherapy services in order to avoid to cap, and went so far as to begin lobbying Congress to repeal the cap by having WCT staff write letters and petitions supposedly on behalf of Medicare patients.
Ms. Brown and Mr. Smorynski face up to 10 years in prison and a $250,000 fine for each count on which they were convicted.
Read the Department of Justice news release on Wayne County Therapeutic.
Owner Bernice Brown was found guilty of one count conspiracy to commit healthcare fraud and 10 counts of healthcare fraud, while vice president Daniel Smorynski was found guilty of one count conspiracy to commit healthcare fraud and six counts of healthcare fraud.
According to evidence at the trail, WCT claimed to be an outpatient physical and occupational therapy clinic. Ms. Brown purchased fake patient files from non-enrolled contractor therapists, who paid Medicare beneficiaries kickbacks in return for the information and false documentation. Ms. Brown and Mr. Smorynski then billed Medicare for the services listed in the files, even though the services were never performed by WCT staff.
In Jan. 2006, Congress enacted a cap on physical and occupational therapy services. Further trial evidence showed that Ms. Brown and Mr. Smorynski began to submit fraudulent claims for psychotherapy services in order to avoid to cap, and went so far as to begin lobbying Congress to repeal the cap by having WCT staff write letters and petitions supposedly on behalf of Medicare patients.
Ms. Brown and Mr. Smorynski face up to 10 years in prison and a $250,000 fine for each count on which they were convicted.
Read the Department of Justice news release on Wayne County Therapeutic.