Date: July 22, 2024 Contact: newsroom@ci.irs.gov BOSTON — A Westford woman was convicted following a nine-day jury trial in federal court in Boston in connection with a home health care fraud scheme. Faith 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 the defendant not guilty on one count of money laundering conspiracy. Sentencing will be scheduled at a later date. Newton was arrested and charged along with co-defendant Winnie Waruru in February 2021. “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.” “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 Criminal Investigation (IRS CI), 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.” “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.” “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.” From January 2013 to January 2017, Newton was a part owner and operator of Arbor Homecare Services LLC. Newton and others engaged in a conspiracy to use Arbor to defraud MassHealth of at least $100 million. Specifically, evidence at trial demonstrated that Arbor, through Newton and others, 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. 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 used the laundered proceeds of the $100 million scheme to purchase a house and a Maserati. Newton’s co-defendant, Waruru, pleaded guilty to her role in the conspiracy in September 2022. She is scheduled to be sentenced on Sept. 18, 2024 before U.S. Senior District Court Judge George A. O’Toole Jr. Newton’s previous trial, beginning on June 26, 2023, ended in a mistrial during jury deliberations on July 10, 2023. The charges of health care fraud, conspiracy to commit health care fraud, and money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. Acting U.S. Attorney Levy; IRS CI SAC Chavis; HHS SAC Coviello; and FBI SAC Cohen, made the announcement today. Assistant U.S. Attorneys Bill Brady and Christopher Looney of the Health Care Fraud Unit are prosecuting the case. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
