Art Hustle: Medicare Bilked

⏱ 3 min read

Irina Segal, the woman behind Bucks County’s Segal Arts, just cut a check for $200,000 to settle federal charges that she was running a Medicare scam. For an unspecified period, Segal allegedly billed the program for bogus occupational therapy – really just group art classes at assisted living facilities in Pennsylvania and New Jersey. The scheme targeted Medicare, claiming funds for individualized medical care that never happened.

Federal investigators from the Department of Health and Human Services’ Office of Inspector General (HHS-OIG) didn’t just catch Segal in the act, they told her what legitimately qualified as billable occupational therapy. Segal reportedly didn’t care. She continued to pocket the fraudulent payments, refusing to return the stolen funds even after getting the sit-down from HHS-OIG.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania hit Segal with a False Claims Act violation, arguing Segal Arts submitted claims for services never rendered. The $200,000 settlement wasn’t about full restitution; it was based on Segal’s demonstrated ability to pay, according to officials. It’s a common tactic in these cases – getting what they can when full recovery is a pipe dream.

U.S. Attorney David Metcalf called it “ongoing focus on pursuing individuals who defraud Medicare.” Maureen Dixon, Special Agent in Charge with HHS-OIG, added the usual boilerplate about protecting program funds. But the bottom line is simple: Segal saw Medicare as an easy mark and tried to get away with it. She didn’t.