A Maryland man was sentenced to a year and a day in prison for participating in a multistate patient brokering scheme that defrauded health insurance companies out of millions of dollars.
John Devlin, 37, of Baltimore, Maryland, pleaded guilty to one count of conspiracy to commit healthcare fraud in U.S. District Court in New Jersey. Devlin’s sentence, handed down by U.S. District Judge Peter G. Sheridan on May 14, 2024, also included three years of supervised release.
The scheme, which operated in New Jersey, Maryland, California, and other states, involved bribing individuals addicted to heroin and other drugs to enroll in drug rehabilitation centers. Devlin and his co-conspirators would then collect referral fees from the facilities, with some facilities paying as much as $10,000 per patient referral.
According to court documents, Devlin and his co-conspirators used a marketing company in California to orchestrate the scheme. They maintained contractual relationships with drug treatment facilities around the country and engaged a network of recruiters to identify and recruit potential patients.
Recruiters would offer bribes of several thousand dollars to convince drug-addicted individuals to enroll in rehabilitation. Once enrolled, Devlin and his co-conspirators would arrange and pay for cross-country travel to the treatment centers. The scheme caused millions of dollars in losses for health insurers.
Devlin’s sentence brings the total number of guilty pleas in the case to seven. Other individuals who have pleaded guilty include Peter Costas, Seth Logan Welsh, John C. Devlin, Akikur Mohammad, Lauren Philhower, and Anastasia Passas. The investigation was led by special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark.
Related Federal Cases
- Maryland Man Slammed with 12 Months for Patient Brokering Scheme · Maryland
- California Man Sentenced to 15 Months for Role in Patient Brokering Scheme · Maryland
- AG James Joins Multistate Push Against Harvard Funding Freeze · Washington
- Calif. Man Gets 15 Months for Patient Brokering Scheme · New Jersey
- James Blocks Trump’s Social Services Cuts · Washington
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News