UNION COUNTY — Last week federal and state agents arrested two Union County residents in a large scale Medicaid fraud scheme that ran into the millions.
The complaint charged that Irina Krutoyarsky, 58, of Springfield, the owner and operator of a home health aid business, HHCH Health Care, Inc. in Linden, hindered a state investigation by bribing a state regulator who was working with the FBI.
Officials said the owner also conspired with the owner of another home health aid businesses in Elizabeth to launder money.
Paul Mil, 68, of Springfield, the owner and operator of People Choice Home Care, another for-profit home health aide business in Linden and Elizabeth, was also involved in the scheme.
The owners billed Medicaid for services provided by home health aides to Medicaid eligible patients, authorities explained.
“The defendants in this case allegedly enriched themselves by gaming the Medicaid system,” U.S. Attorney Paul Fishman said, adding the actions described in the complaint were “especially egregious because taxpayer dollars stolen were intended to provide necessary health care for our most vulnerable citizens.”
The complaint involved the arrest of eleven people involved in the home health-aide business scam was the result of a four-year investigation involving a scheme of fraud, money laundering and bribery in order to defraud the New Jersey Medicaid program of millions of dollars.
Fishman explained that Krutoyarsky, Mil and their conspirators allegedly defrauded Medicaid of millions of dollars through a variety of scams, including billing Medicaid for treatment and services that never took place, obtaining fraudulent home health aide certifications for employees and others and using illegal aliens or uncertified people to provide home health aide services.
They then billed Medicaid, claiming that these services had been provided by certified home health aides, officials said.
The case was cracked after someone working for the FBI recorded conversations, including one in January 2012, in which both business owners discussed obtaining a home health aide license and billing Medicaid by providing false information about patients.
According to the complaint filed in the case, for example, on Jan. 31, 2012, agents recorded Krutoyarsky and Mil explaining to a cooperating witness that “You know it’s just the free money coming in,” and mentioning that as long as people do not live at the same address, “Medicaid is not gonna trace.”
Krutoyarsky and Mil also sent undocumented aliens and other unlicensed people to patient’s homes, laundering the money they received to conceal their scheme in addition to bribing a state department of labor employee to keep the entire issue under wraps. Krutoyarsky faces charges for conspiracy to commit health care fraud, bribery, conspiracy to unlawfully structure financial transactions, while Mil faces charges related to bribery and conspiracy to commit money laundering.