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New Orleans Man Pleads Guilty to Conspiracy to Receive Kickbacks
A 61-year-old New Orleans man has admitted to his role in a massive Medicare fraud scheme that bilked the system of over $30 million. Cary Payton, a Licensed Practical Nurse, pleaded guilty to one count of conspiracy to receive illegal kickbacks.
Payton was just one of 20 defendants indicted in 2015 on 26 counts of Medicare and BP fraud. The scheme, which operated through Abide Home Care Services, a home health company owned by Lisa Crinel, saw Payton and other LPNs, aides, recruiters, and marketers paid $150 to $300 for each referral of a Medicare beneficiary to Abide.
Abide would then bill Medicare for medically unnecessary home health services, netting the company millions. Payton admitted to receiving a $300 payment for his referral of a Medicare beneficiary to Abide.
The scheme, which was investigated by the Federal Bureau of Investigation, also involved other home health companies. Payton faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment.
U.S. Attorney Kenneth A. Polite praised the work of the FBI in uncovering the scheme. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, and Andre Lagarde are in charge of the prosecution.
Payton is set to be sentenced on April 20, 2016, by U.S. District Judge Susie Morgan. The guilty plea brings to light the extent of the scheme, which saw millions of dollars in taxpayer money squandered on unnecessary services.
The guilty plea also highlights the efforts of law enforcement to crack down on Medicare and BP fraud. As the scheme continues to unravel, more individuals may face prosecution for their roles in the massive conspiracy.
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Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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