Two brothers who operated multiple South Florida addiction treatment facilities have been sentenced to prison for a $112 million addiction treatment fraud scheme. Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, both of Bal Harbour, were sentenced to 188 months and 97 months in prison, respectively, in the Southern District of Florida.
The brothers, who operated Second Chance Detox LLC, dba Compass Detox, and WAR Network LLC, were found to have conspired to unlawfully bill for approximately $112 million of addiction treatment services that were medically unnecessary and/or never provided. They obtained patients through patient recruiters who offered illegal kickbacks, including free airline tickets, illegal drugs, and cash payments.
Patient recruiters also gave patients illegal drugs prior to admission to Compass Detox to ensure admittance for detox, which was the most expensive kind of addiction treatment offered by the defendants’ facilities. Therapy sessions were billed for but not regularly provided or attended, and excessive, medically unnecessary urinalysis drug tests were ordered, billed for, and paid.
The brothers were convicted of conspiracy to commit health care fraud and wire fraud after a seven-week trial in November 2021. Jonathan Markovich was also convicted of eight counts of health care fraud, conspiracy to pay and receive kickbacks, and two counts of paying and receiving kickbacks. Daniel Markovich was convicted of two counts of health care fraud and two counts of paying and receiving kickbacks.
The FBI’s Miami Field Office, Department of Health and Human Services, Office of Inspector General, and the Broward County Sherriff’s Office investigated the case. Senior Litigation Counsel Jim Hayes and Trial Attorney Jamie de Boer of the Criminal Division’s Fraud Section prosecuted the case.
“These substance abuse treatment facility operators, through brazen tactics driven by greed, took advantage of vulnerable patients seeking treatment,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “These sentences demonstrate the department’s unwavering commitment to protecting patients and prosecuting fraudulent substance abuse treatment facilities through our Sober Homes Initiative.”
“To manipulate and exploit patients seeking help in their most vulnerable state is unacceptable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals orchestrated a scheme that sought profits over the well-being of patients, and they will be held accountable for their actions.”
The National Sober Homes Initiative is a coordinated effort by the Justice Department to combat sober home fraud and protect vulnerable patients. The initiative includes the Sober Homes Strike Force, a multi-agency task force that investigates and prosecutes fraudulent sober home operators.
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Key Facts
- State: Florida
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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