BOSTON—The owner of a home health agency has been sentenced in federal court in Boston in connection with a home health care fraud scheme.
Faith Newton, 56, was sentenced by U.S. Senior District Court Judge George A. O’Toole, Jr. to 12 years in prison to be followed by three years of supervised release, according to a release from the U.S. Attorney's Office Massachusetts District. She was also ordered to pay a fine of $250,000 and restitution in the amount of $99,734,517.
In July 2024, Newton was convicted of one count of conspiracy to commit health care fraud, one count of health care fraud and three counts of money laundering. The jury found her not guilty on one count of money laundering conspiracy. Newton was arrested and charged in February 2021 along with co-defendant Winnie Waruru.
“Newton used the home health care agency she operated to perpetrate a massive, years-long fraud scheme that siphoned over $100 million from a program designed to support our most vulnerable residents," said U.S. Attorney Leah B. Foley. "She used the stolen money to fund her lavish lifestyle, showing a callous disregard for those who were in dire need of care and assistance. Her actions not only defrauded taxpayers but also compromised the integrity of essential home health care services. The significant prison term imposed today reflects the seriousness of her crimes.”
Other officials involved, including those from the Department of Health and Human Services Offices of Inspector General (OIG), the IRS and the FBI, said they were committed to investigating and prosecuting these types of crimes.
"Our message is clear: those who exploit our nation’s health care system for personal gain will be caught, and justice will be served," said Robert Coviello, special agent in charge of the OIG.
From January 2013 to January 2017, Newton operated Arbor Homecare Services LLC, which she used to defraud MassHealth of at least $100 million, according to the U.S. Attorney's Office.
Specifically, Arbor, through Newton and others, billed for home health services that were never provided. Co-conspirators were instructed by Newton to create and submit falsified copy-and-paste notes from nursing visits that did not happen. In addition, Arbor, through Newton and others, paid kickbacks for patient referrals, regardless of medical necessity. They also entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not occur. Newton and Arbor would flood clinics with care plans that were not medically necessary, pressuring doctors to sign off.
At Newton’s direction, Arbor would submit false claims to MassHealth for services by home health aides (HHAs) who were not trained and certified as required by law. Arbor never provided the required 75 hours of training to the people it hired. Newton covered up the lack of HHA training by forging training documents and giving hires sham exams along with answer keys.
In 2017, after learning that Mass Health had cut off Arbor, Newton cut herself and her husband each a $2 million dollar check from the Arbor payroll account. Newton backdated the checks to 2016 to make them appear as Christmas bonuses, when in fact, Newton wrote and negotiated the checks in January 2017.
Newton’s co-defendant, Waruru, pleaded guilty to her role in the conspiracy in September 2022. A sentencing date for Waruru has not yet been scheduled.