New Jersey Medicaid Fraud Scheme Unfolds as Owner Pleads Guilty

NEWARK, N.J. – Grimy Times has learned that Irina Krutoyarsky, 61, of Springfield, New Jersey, has admitted to her role in a $7 million scheme to defraud Medicaid and engage in bribery, money laundering, and tax evasion.

According to documents filed in the case and statements made in court, Krutoyarsky owned HHCH Health Care Inc., of Linden, New Jersey, which provided home health aides and health care services to New Jersey residents. Medicaid subsidized these services under the N.J. Medical Assistance Program.

Krutoyarsky and her conspirators defrauded Medicaid by submitting false documents to the N.J. Board of Nursing, the state agency responsible for issuing home health aide certifications. They falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing.

Krutoyarsky also fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. These aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients.

Krutoyarsky pleaded guilty to conspiracy to commit health care fraud, bribery, conspiracy to commit money laundering, and tax evasion before U.S. District Judge Katharine S. Hayden in Newark federal court. The charges carry significant prison time and fines, and Krutoyarsky faces a lengthy prison sentence.

Krutoyarsky’s scheme was uncovered after federal agents introduced a cooperating witness, posing as a prospective home health aide, during a meeting with Krutoyarsky. The witness recorded Krutoyarsky explaining the scheme, stating they would fraudulently bill Medicaid to obtain ‘free money from the Government.’

In May 2011, Krutoyarsky paid a second cash bribe of approximately $15,000 to the employee, who was working in an undercover capacity with federal agents. The employee recorded Krutoyarsky making the bribe payment on video.

Krutoyarsky’s crimes have left a trail of financial devastation, with Medicaid defrauded out of $7 million. She used the money to purchase real property, personal property, and pay for personal expenses. Her sentencing is pending, and Grimy Times will continue to follow this case.

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