Armando Gonzalez, 50, of Hendersonville, N.C., has pleaded guilty to a $63 million mental health fraud scheme in Miami.
According to court documents, Health Care Solutions Network Inc. (HCSN), operated by Gonzalez, operated community mental health centers (CMHC) at three locations in Miami-Dade County and one location in Hendersonville.
HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. However, the company obtained Medicare beneficiaries by paying kickbacks to owners and operators of assisted living facilities (ALF).
Gonzalez pleaded guilty to conspiracy to commit health care fraud and conspiracy to commit money laundering. He will also forfeit his interest in property valued at several million dollars, including $987,910 in currency seized in July 2012.
Between 2004 and 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services, resulting in over $28 million in false claims.
Gonzalez’s plea agreement details how HCSN employees fabricated patient census data and medical records to support false billing to government-sponsored health care benefit programs.
The scheme involved admitting patients who were ineligible for PHP treatment due to medical conditions such as mental retardation, dementia, and Alzheimer’s disease. Patients were also rewarded with cigarettes for attending treatment sessions.
Armando Gonzalez’s guilty plea is a significant blow to the organization, which perpetrated a massive healthcare fraud scheme in Florida and North Carolina.
Mandatory Facts:
Defendant: Armando Gonzalez, 50
Crimes: Conspiracy to commit health care fraud and conspiracy to commit money laundering
City and State: Miami, Florida
Date: July 2012 (seizure of $987,910 in currency) and 2023 (plea agreement)
Sentence: Plea agreement with forfeiture of interest in property valued at several million dollars
Dollar Amounts: $63 million (false claims), $28 million (overpaid claims), $987,910 (seized currency)
Related Federal Cases
- Jeffery Hall, Mail Fraud, Florida 2023 · Florida
- Robert Anton Woodring, Mail Fraud and Conspiracy to Commit Mail Fraud, Florida 2015 · Florida
- Domenico Dom Rabuffo, Mortgage Fraud Scheme, Florida 2023 · Florida
- Mae Rabuffo, Mortgage Fraud Scheme, Florida 2008 · Florida
- Henry Dorvil, Identity Theft and Tax Fraud, Florida 2023 · Florida
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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