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Financial Crimes

25 charged in Alaska Medicaid fraud scheme

Defendants include providers and recipients

ANCHORAGE, Alaska — Federal and state officials Tuesday announced the filing of Medicaid fraud charges against 25 Anchorage-area personal care attendants and Medicaid recipients.

Prosecutors allege the scheme involved billing Medicaid for more than $300,000 in personal care attendant services that were never provided. According to court records, Good Faith Services, LLC, which furnishes personal care, transportation and care coordination services to eligible Medicaid beneficiaries, provided kickbacks to participating Medicaid recipients. Prosecutors say in some instances Good Faith billed for services during times investigators purport care attendants and recipients were out of the country.

Alaska Department of Health and Social Services started the investigation after learning Good Faith employees were not providing care to Medicaid recipients living in Chugach Manor and Chugach View apartments. The initial review of the care attendants working for Good Faith revealed that many were making more than $100,000 a year and one attendant in excess of $275,000 in two years.

The case is being prosecuted by the Medicaid Fraud Control Unit of the Alaska Department of Law. The state and federal probe included investigators from the Anchorage Police Department; the Department of Commerce; the Department of Health and Human Services, Office of Inspector General; the Social Security Administration; the FBI; and U.S. Immigration and Customs Enforcement's Homeland Security Investigations.

The information filed against each defendant is only a charging document and is not evidence of guilt. A defendant is presumed innocent and is entitled to a trial, at which time the government must prove guilt beyond a reasonable doubt.