A Detroit-area couple who owned home health care companies was sentenced to prison last week for Medicare fraud and tax evasion, according to U.S. Attorney Dawn Ison.
Noli and Isabel Tcruz of Washington Township, Michigan, were sentenced on Sept. 4. Noli Tcruz received six years in prison, and his wife was given three years and two months.
The Tcruzes were convicted and sentenced for schemes related to their operation of several Macomb County home health care companies. These companies purported to provide legitimate medical care to Medicare beneficiaries but engaged in fraud.
“My office will diligently investigate and prosecute all types of fraud driven by greed,” U.S. Attorney Ison said in a statement. “Noli and Isabel Tcruz’s fraud harmed taxpayers and the government programs our tax dollars fund, including Medicare and COVID-19 programs. Health care professionals and providers have an opportunity and a duty to help people lawfully. Still, we will not hesitate to pursue individuals like these defendants who breach those duties to line their own pockets.”
The Tcruzes were involved in a roughly $5 million scheme to illegally offer kickbacks and bribes in exchange for referrals for home health care for Medicare beneficiaries. They also failed to pay their personal and business taxes.
After their last home health company closed in February 2020, Noli Tcruz began committing COVID-19 program fraud. He used a family member’s identity and company to deceive and defraud the Small Business Administration and Health and Human Services, obtaining over $250,000 in pandemic assistance funds.
Two physicians, Dr. Terry Baul and Dr. David Calderone, admitted to accepting kickbacks and bribes in exchange for referring Medicare beneficiaries to the Tcruzes. As part of their plea agreements, the two physicians were required to pay more than $3 million in restitution and forfeiture judgments. Additionally, they have been excluded from participating in Medicare and other federal health care programs.
“Paying kickbacks to induce referrals for medical services in federal health care programs is illegal and can lead to the delivery of unnecessary services, wasting valuable taxpayer funds,” Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said in a statement. “HHS-OIG will continue collaborating with our law enforcement partners to ensure that those who engage in unlawful kickback schemes in our federal health care programs are held accountable.”
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