Pro Healthcare Servicing, LLC, Kickback and Pandemic-Relief Fraud, Virginia 2021
A Fairfax-based home health care company and two executives have agreed to pay $1 million to resolve allegations of a kickback scheme designed to obtain referrals for home health and hospice patients. According to the United States, Pro Healthcare Servicing, LLC (Pro Health), its Chief Executive Officer, Erwin Cheng, and its Chief Administrator, Gloria Jiang, both of Ashburn, paid kickbacks to employees at various assisted living facilities and skilled nursing facilities throughout northern Virginia to induce those facilities to refer patients to Pro Health for home health and hospice services.
Pro Health then billed Medicare for services rendered to those patients, further enriching the scheme. The United States alleged that from 2012 to 2021, Pro Health engaged in this illegal activity, defrauding Medicare and violating federal healthcare laws.
The United States further alleged that while Pro Health was engaged in the kickback scheme, the company fraudulently obtained pandemic-relief loans through the Small Business Administration’s Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by falsely certifying that the company was not engaged in any illegal activity when applying for the loans.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General.
Pro Healthcare Servicing, LLC agreed to pay $1 million to resolve the claims, but there has been no admission of liability. The civil claims are allegations only.
The defendants, Pro Health, Erwin Cheng, and Gloria Jiang, are from Ashburn, Virginia. The alleged kickback scheme and pandemic-relief fraud occurred from 2012 to 2021 in Fairfax, Virginia.
The U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case, with Assistant U.S. Attorney William Hochul and former Assistant U.S. Attorney Ilene Albala working on the matter.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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