Coloring Book Crooks: Medicare Fleece

⏱ 2 min read

Irina Segal and her company, Segal Arts, LLC, are paying up $200,000 after a federal probe revealed they were billing Medicare for one-on-one occupational therapy that never happened. The scheme, which unfolded across assisted living facilities and adult day care centers in Pennsylvania and New Jersey, essentially swapped medical rehabilitation for group arts-and-crafts sessions—think coloring books, not physical therapy. The fraud targeted vulnerable seniors and ran for an unspecified period before investigators stepped in.

Federal investigators with the Department of Health and Human Services, Office of Inspector General (HHS-OIG) didn’t just find the bogus billing, they reportedly sat down with Segal and *explained* what legitimate occupational therapy looks like. Even after that clear warning, Segal refused to refund the improperly obtained funds. It took a consent judgment from U.S. Attorney David Metcalf’s office to force repayment.

The $200,000 isn’t a full recovery, but what Segal can reasonably afford, according to the feds. The agreement doesn’t admit wrongdoing, but it does end the dispute. The DOJ is framing the settlement as accountability for preying on seniors, but it’s a clear signal that even blatant billing fraud can be resolved with a payment plan rather than a criminal indictment.

This isn’t the first time Segal has run into trouble. Documents show Segal previously faced legal issues in connection with SBA loan fraud, racking up a 5.5-year sentence. The latest settlement raises questions about repeated patterns of deceptive business practices.