Joseph A. Haynes, 63, of New Orleans, Louisiana, pleaded guilty yesterday to orchestrating a scheme to solicit illegal kickbacks from a home health agency in exchange for medically unnecessary patient referrals—ripping off the Medicare system for over $300,000. The case exposes a chilling network of corruption involving physicians, recruiters, and clinic owners all cashing in on vulnerable patients who never needed care.
Haynes admitted in federal court to one count of conspiracy to solicit and receive health care kickbacks and bribes, copping to funneling approximately $331,000 in disguised marketing fees from Milton Diaz, 66, of Harvey, Louisiana, owner of Progressive Home Health. The payments were funneled through patient recruiter Kim Ricard, 52, of Gonzales, for whom Haynes arranged the illicit compensation. He also admitted to securing $1,500 monthly kickbacks for two physicians, Muhammad Kaleem Arshad, M.D., 63, of New Orleans, and Padmini Nagaraj, M.D., 61, of Kenner, under the false guise of medical director fees.
The scheme relied on deception at every level. Arshad and Nagaraj, both of whom have already pleaded guilty to conspiracy to commit health care fraud, certified Medicare beneficiaries—many from a Louisiana psychiatric facility—for home health services they didn’t need. Haynes coordinated the bribes, ensuring the patients were referred to Progressive, which then submitted fraudulent claims to Medicare. In reality, the patients were not eligible, and the services were never medically justified.
Diaz, the clinic owner behind Progressive, pleaded guilty on July 13, 2017, and awaits sentencing on July 31, 2019, before U.S. District Judge Jane Triche Milazzo. Ricard, the patient recruiter, was convicted after a three-day trial in September 2017 and is already serving a 51-month prison sentence handed down January 4, 2018. Arshad is set for sentencing on July 11, 2019, while Nagaraj faces court on August 8, 2019—both before U.S. District Judge Barry W. Ashe.
The case was prosecuted by Trial Attorneys Jared Hasten, Katherine Payerle, and Claire Yan of the Justice Department’s Criminal Division’s Fraud Section. It was investigated by the FBI and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), operating under the Medicare Fraud Strike Force—a joint federal task force targeting systemic fraud. Sentencing for Haynes is scheduled for August 22, 2019, before Judge Ashe.
Since its launch in March 2007, the Medicare Fraud Strike Force has charged nearly 4,000 defendants responsible for over $14 billion in false Medicare billings. This case out of the Eastern District of Louisiana underscores how deeply fraud can infiltrate the health care system when greed eclipses ethics—and how federal prosecutors are cracking down, one guilty plea at a time.
Related Federal Cases
- Saquena ‘Queenie’ Griffin Indicted in $378K Medicare Kickback Scheme · Louisiana
- Tom McCardell Guilty in $6.7M Medicare Kickback Scheme · Alabama
- Jobie Crear Pleads Guilty to Kickback Scheme · Louisiana
- Conspirator Maggie Kay Comeaux Sentenced for Prison Bribery Scheme · Michigan
- New Orleans Resident Pleads Guilty to Counterfeit Card Scheme · Texas
Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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