Close to the heart of the United States, in New Jersey, two men confessed to defrauding health insurance companies of millions of dollars. The whole scheme was carried out by making people collect drug addicts and get them admitted to drug rehabilitation centers. They executed the scheme by paying such recruiters incentives for referring the addicts. The case was made public by US Attorney Craig Carpenito.
A 26-year-old man named Seth Logan was involved with another co-conspirator in the crime. He was from Forest Hill of Maryland. The co-conspirator was John C. Devlin, a 33-year-old man from Baltimore in Maryland. Peter G. Sheridan was the US District Judge for the case.
Another man named Peter Costas also admitted to the same crime. It was in May of 2020.
Devlin and Welsh were the owners of a marketing company. It was located in California. They used this company to defraud drug rehabilitation facilities. They targeted the areas of Maryland, New Jersey, and California. The scheme would involve paying incentives to drug addicts for getting admitted to rehabilitation centers. They would in turn get fees from these centers.
The marketing company was in connection with various rehabilitation centers across the nation. There were recruiters all around the nation for collecting drug addictions and referring them to the centers. These patients were mostly people with good health insurance. They made sure of this in order to defraud the related insurance companies of the patients.
Furthermore, they admitted that Costas even gave incentives to the addicts for coming and getting admitted to the centers. These incentives sometimes amounted to almost thousands of dollars. The conspirators would cover the addicts’ travel costs to the centers. These travels sometimes were even very long ones from one part of the country to another. Sometimes there were travels to California and other states. They would keep in contact with the addicts. In fact, they would insist that the addicts stay at the centers long enough to get enough payments that covered their cost of referral. These three co-conspirators would keep in contact with each other to keep track of the addicts that they recruited. They also kept in contact with the owners of such facilities as well as the workers at such centers.
Furthermore, the conspirators would cycle the patients among the rehabilitation centers in order to keep on getting the referral payments. This would continue without considering whether these rehabilitation services were useful to the patients or not. In fact, they did not even bother to know whether these patients were recovered.
Additionally, the conspirators were also connected with rehabilitation centers that were not focused on curing the addicts but rather boosted drug use in their premises. In fact, there was even a patient who reported such ineffective treatment of the center to the conspirators explaining in detail regarding the addictive behaviors that were allowed at the center. Various addictive substances like meth and cannabis were seen being used by the majority of the patients in the center. Actually, he even said that out of ten people, six were continuing their drug use at the center. There was utter carelessness in the treatment at the center. Their communication evidence showed how lightly they took addictive behaviors in rehabilitation facilities and rather only cared about keeping the addicts long enough at the centers so that they would earn the money of referral. They took the communication messages as jokes to be brushed off.
The amount of referral money that the schemers received ranged from about five thousand dollars to almost ten thousand dollars for each person admitted. Devlin and Welsh shared these amounts with some other frauds. Costas and his agents got about fifty percent of the amount. In the total scheme, the team managed to refer numerous patients to such facilities. And through these actions, they defrauded health insurance companies of millions of dollars.
Devlin and Welsh would potentially face about ten years maximum imprisonment. A fine of a quarter-million dollars would also be charged. If the loss from the offense or the gain was greater, the fine could be doubled. Sentencing was to be on the 11th of January, 2020.
The Federal Bureau of Investigation was involved in the investigation of the case. Special Agent In Charge of the office was George M. Crouch Jr in Newark. US Attorney Carpenito gave special credit to the work of the agency in the solving of the case.
Healthcare frauds are executed through a complicated web of many people and organizations. Planning the best way to help go through such situations calls for special knowledge. Anyone who gets tangled in such cases should look for genuine legal assistance. The Healthcare Fraud Group has been established to cater to the needs of such people. We give comprehensive support through simple communication along with the combination of information as well as experienced background. We ensure your case is represented in the most targeted way in the court of law. Please feel free to contact us at 888-402-4054 for free consultations.