Medicare Scam: Arts & Crafts Racket Cost Taxpayers $200K

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PHILADELPHIA, PA – Irina Segal, owner of Bucks County-based Segal Arts, LLC, is on the hook for $200,000 after a federal investigation revealed a brazen scheme to bilk Medicare. Instead of providing one-on-one occupational therapy to vulnerable seniors in assisted living facilities across Pennsylvania and New Jersey, Segal’s company allegedly ran glorified arts-and-crafts classes and then billed the government as if they were intensive, individual therapy sessions.

Federal prosecutors say Segal continued the scam even after being warned by investigators with the Department of Health and Human Services Office of Inspector General (HHS-OIG) about the specific requirements for billing those services. Segal reportedly knew exactly what she was doing, substituting paintbrushes for proper patient care and pocketing the difference.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania entered a consent judgment against Segal and her company this week. While the $200,000 represents a partial recovery – based on Segal’s stated ability to pay – it’s a clear message that Medicare fraud won’t be tolerated. “This investigation…reflects our ongoing focus on pursuing individuals who defraud Medicare,” U.S. Attorney David Metcalf said in a statement.

HHS-OIG Special Agent in Charge Maureen Dixon added, “This agreement demonstrates our commitment to ensuring that Medicare program dollars are only paid for services that were actually provided to patients.”

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