Homecare Owner Convicted for $100M Health Care Fraud

BOSTON—A Westford woman was convicted Friday, July 19, 2024 following a nine-day jury trial in federal court in Boston in connection with a home health care fraud scheme.

Faith Newton, 56, was convicted of one count of conspiracy to commit health care fraud, one count of health care fraud, and three counts of money laundering. The jury found the defendant not guilty on one count of money laundering conspiracy. Sentencing will be scheduled at a later date. Newton was arrested and charged along with co-defendant Winnie Waruru in February 2021.

From January 2013 to January 2017, Newton was a part owner and operator of Arbor Homecare Services LLC. Newton and others engaged in a conspiracy to use Arbor to defraud MassHealth of at least $100 million.

“As Faith Newton’s greed and wealth increased, her elaborate $100 million home health care fraud scheme collapsed. For years, her company billed taxpayers for home health services they did not provide, were not authorized, or were not medically necessary. She paid kickbacks, laundered illegal proceeds and even bought a Maserati,” said Jodi Cohen, special agent in charge of the Federal Bureau of Investigation, Boston Division. “Our health care system is under constant attack by fraudsters who have pilfered billions of dollars from Medicare and other health care benefit programs. Today’s verdict should be a warning to others that committing health care fraud will not be tolerated.”

Specifically, evidence at trial demonstrated that Arbor, through Newton and others, failed to train staff, billed for home health services that were never provided or were not medically necessary and billed for home health services that were not authorized. Arbor, through Newton and others, paid kickbacks for patient referrals, regardless of medical necessity. They also entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not occur.

Newton used the laundered proceeds of the $100 million scheme to purchase a house and a Maserati.

Newton’s co-defendant, Waruru, pleaded guilty to her role in the conspiracy in September 2022. She is scheduled to be sentenced on Sept. 18, 2024 before U.S. Senior District Court Judge George A. O’Toole Jr.

Newton’s previous trial, beginning on June 26, 2023, ended in a mistrial during jury deliberations on July 10, 2023.

The charges of health care fraud, conspiracy to commit health care fraud, and money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the money involved in the laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

“Faith Newton’s flagrant greed and theft orchestrated through her health care fraud scheme is disgraceful. The jury’s verdict further demonstrates IRS-CI’s commitment to not only protecting the American taxpayers but also the most vulnerable of citizens,” said Harry Chavis, Jr., special agent in charge of the Internal Revenue Service’s Criminal Investigations, Boston Field Office. “By stealing from MassHealth, Newton not only stole from federally-funded programs and taxpayers, but she then used those proceeds to fund a lavish lifestyle for herself.  As a direct result of Newton’s scheme, these programs had fewer available funds to assist the individuals who truly needed the help.”