A Buffalo-area licensed clinical social worker is facing prison time after pleading guilty to defrauding insurance companies of nearly $100,000. Eugene Domenico, 61, of Lockport, N.Y., admitted to devising a scheme to charge health care insurance providers, including Blue Cross Blue Shield, for services that were not rendered.
According to Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, Domenico billed Blue Cross Blue Shield for services allegedly provided to a patient on January 6, 2011, knowing that services were never provided. The total loss to insurance companies was $100,286.35.
The conviction marks the second time in less than a week that U.S. Attorney William J. Hochul, Jr. has announced charges against a healthcare provider for committing fraud. ‘As we said earlier this week, fraud in the health care industry drives up costs for the rest of the public,’ Hochul said. ‘This second conviction in less than a week demonstrates that our Office will continue to vigorously prosecute this type of fraud.’
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Health Care Fraud Task Force. Sentencing is scheduled for February 4, 2015, at 9:00 a.m. before Chief U.S. District Judge William M. Skretny.
The charges against Domenico carry a maximum penalty of three years in prison and a fine of $100,000 or both. The investigation into the matter is ongoing, with officials working to determine the full extent of Domenico’s scheme.
As the healthcare industry continues to face scrutiny over allegations of fraud, law enforcement officials are stepping up their efforts to root out those who are taking advantage of the system. ‘We will continue to work tirelessly to hold those accountable who commit these crimes,’ Hochul said.
The case against Domenico highlights the importance of vigilance in the healthcare industry, where even small discrepancies can have significant consequences. As officials continue to investigate and prosecute those who commit healthcare fraud, it is clear that the consequences for these crimes will be severe.
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