Physical Therapist Guilty of Tax Fraud

A local physical therapist has pleaded guilty to tax fraud and obstruction of a federal audit, according to court documents. Danielle Faux, 48, of Weston, faces a maximum of five years in prison and a fine of up to $250,000 for her role in obstructing a Medicare audit of her physical therapy practice.

The investigation revealed that Faux owned and operated Danielle Faux PT, LLC, a physical therapy clinic located at 27 Lois Street in Norwalk. In August 2009, a contractor for the Medicare program contacted Faux and requested records of 40 claims for physical therapy that Faux had submitted to Medicare. The records included documentation to support the services billed, including patient progress notes and physical therapy flow sheets.

However, no such records existed to support many of the Medicare claims. Faux instructed a physical therapist working for her to create detailed notes in the patient files, and Faux similarly created such records. This action was taken to impede the audit and hide the true nature of her business.

As part of her plea, Faux also admitted to skimming checks and cash proceeds from her physical therapy practice and failing to declare the skimmed proceeds on her federal income tax returns. This action resulted in Faux avoiding payment of $77,640 in taxes over a four-year period.

Judge Stefan R. Underhill scheduled sentencing for December 15, 2016. The case is being investigated by the Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of the Inspector General, and Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney David J. Sheldon is prosecuting the case.

Faux’s actions not only compromised the integrity of the Medicare program but also jeopardized the trust of her patients and the community. Her guilty plea serves as a reminder of the consequences of engaging in such fraudulent activities.

The case highlights the importance of transparency and accountability in healthcare, particularly in the physical therapy industry. It also underscores the need for vigilance in detecting and preventing Medicare fraud.