NEWARK – Earlier this month, federal and state agents arrested 11 people, including the owners of home health aide businesses located in Linden and Elizabeth, in connection with an alleged scheme to defraud the Medicaid program of millions of dollars, according to U.S. Attorney Paul J. Fishman.
Irina Krutoyarsky, 58, the owner and operator of HHCH Health Care Inc. (HHCH), a for-profit home health aide business located in Linden, and Paul Mil, 68, the owner and operator of People Choice Home Care Inc. (People Choice), another for-profit home health business located in Linden and Elizabeth, were among those charged in connection with the alleged fraud.
According to the compliant, Krutoyarsky, Mil and their conspirators allegedly defrauded Medicaid of millions of dollars through a variety of schemes, including:
- billing Medicaid for treatment and services not actually rendered;
- obtaining fraudulent home health aide certifications for employees and others;
- using illegal aliens and/or non-certified individuals to provide home health aide services and billing Medicaid, claiming the services had been provided by certified home health aides.
Krutoyarsky and Mil then allegedly laundered the proceeds of the Medicaid fraud to conceal their scheme and allow it to continue. Krutoyarsky and defendant Gulmira Shayakhmetova, 46, of Howell, are accused of conspiring to structure money, by making numerous cash withdrawals in amounts under $10,000, to evade the banks requirement to file a report with the United States Treasury.
“The defendants in this case allegedly enriched themselves by gaming the Medicaid system,” Fishman said. “The actions described in this complaint are especially egregious, because the taxpayer dollars that were stolen were intended to provide necessary health care for our most vulnerable citizens. I’m especially proud that federal and state law enforcement agencies worked together effectively to uncover this alleged fraud.”
Krutoyarsky also allegedly bribed a N.J. Department of Labor employee on two occasions to stop wage and hour investigations into HHCH and People Choice.
Krutoyarsky; Mil; Nekadam S. Galibova, 51 of Union; Lilia Berstein, 57, of Old Bridge; Bella Fridman, 66, of East Brunswick; Malvina Frolova, 41 of Old Bridge; Sonia Mesa of Elizabeth; Nelson Mesa, 68, of Elizabeth; Alla Neymet of Edison; and Leonora Popesku, 65, of Edison are charged with conspiracy to commit health care fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Krutoyarsky is also charged with two counts of bribery, and each charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Krutoyarsky and Mil are charged with conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine.
Krutoyarsky and Shayakhmetova are charged with conspiracy to unlawfully structure financial transactions, which carries a maximum penalty of five years in prison and a $250,000 fine.
The criminal complaint also alleges forfeiture and provides notice of the federal government’s intent to forfeit at least $3.45 million in proceeds from the alleged offense and numerous properties in Krutoyarsky’s name in New Jersey, Florida and New York.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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