Faith Newton, Home Health Care Fraud, Massachusetts 2023

BOSTON – In a shocking case of abuse, Faith Newton, 52, of Westford, Massachusetts, has been accused of masterminding a $100 million home health care fraud scheme. Newton, part-owner and operator of Arbor Homecare Services LLC, allegedly conspired with Winnie Waruru, a Licensed Practical Nurse employed by Arbor, to defraud MassHealth and Medicare.

According to the indictment, Newton and Waruru engaged in a conspiracy to use Arbor to commit health care fraud and pay kickbacks to induce referrals from January 2013 to January 2017. Newton allegedly laundered the ill-gotten gains, using the proceeds to purchase multiple homes, a Maserati, and fund investment accounts.

The indictment charges Newton with one count of conspiracy to commit health care fraud, one count of health care fraud – aiding and abetting, one count of conspiracy to pay and receive kickbacks, one count of money laundering conspiracy, and seven counts of money laundering. Waruru faces charges of conspiracy to pay and receive kickbacks, making false statements, and making a false statement in a health care matter.

Newton and Waruru were arrested yesterday and will make an initial appearance in federal court in Boston today at 1:30 p.m. The case is a stark reminder of the need for vigilance in the home health care industry.

The indictment alleges that Arbor failed to train staff, billed for home health services that were never provided or were not medically necessary, and entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary.

The charges against Newton and Waruru carry significant penalties, including up to 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the amount of the money involved in the laundering.

The case is a result of a joint investigation by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, the Internal Revenue Service’s Criminal Investigation in Boston, and the Federal Bureau of Investigation, Boston Field Division.

Mandatory Facts:

Defendant: Faith Newton

Criminal Charges: Conspiracy to commit health care fraud, Health care fraud – aiding and abetting, Conspiracy to pay and receive kickbacks, Money laundering conspiracy, Money laundering

City and State: Westford, Massachusetts

Date: January 2023 – January 2017

Sentence: Up to 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the amount of the money involved in the laundering

Dollar Amounts: $100 million

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