DOJ Sentences Four to Prison for Involvement in a $205 Million Health Fraud Scheme

Date posted: February 15, 2013

Four individuals were recently sentenced to prison for their involvement in a $205 million Medicare fraud scheme. The individuals were former employees of the American Therapeutic Company (ATC), operated out of Miami, Florida. According to the Department of Justice (DOJ), the four individuals conspired to pay illegal kickbacks to owners of assisted living facilities and halfway houses to send the residents to ATC as patients. The patients then received services from ATC that were not covered by Medicare. Further, the individuals laundered the improper Medicare payments to continue paying for the kickbacks. As a result, the individuals generated $205 million in improper Medicare payments.

The individuals involved in the Medicare scheme included the former ATC program director, two marketers and an ATC therapist. They received prison sentences ranging from 36 to 99 months. In addition, they were ordered to pay back over $205 million in restitution.

This case was prosecuted by the Fraud Section of the DOJ’s Criminal Division in conjunction with the Medicare Fraud Strike Force.

The DOJ press release on the sentencing of the program director and two marketers is available at: http://www.justice.gov/opa/pr/2013/January/13-crm-111.html.

The DOJ press release on the sentencing of the mental health therapist is available at: http://www.justice.gov/opa/pr/2013/January/13-crm-116.html.


Department of Justice. “Miami-Area Therapist Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud Scheme.” Press Release. 28 Jan. 2013.

Department of Justice. “Former Program Director and Marketers Sentenced to Prison in Florida in $205 Million Community Mental Health Fraud Scheme.” Press Release. 25 Jan. 2013.

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