Chicago Fil-Am gets 1 year-plus, $2.3M fine for Medicare fraud
Home health care part-owner Frederick Magsino was sentenced for Medicare fraud. PINOY NEWSMAGAZINE
CHICAGO—The co-owner of the Filipino American-owned Rosner Home Healthcare, Inc. received a 366-day sentence plus three years supervised probation after his release from prison.
U.S. District Court Judge in Northern Illinois John W. Darrah also ordered Frederick Magsino on March 17 a restitution of $2,260,000 to the government.
Magsino, 63, is one of the nine persons originally indicted on July 25, 2012 that included his co-owner, Ana Nerissa “Nerie” Tolentino,46; his former marketer Edgardo “Gary” Hernal,58; two physicians–Emmanuel Nwaokocha, 63, and Massod Syed,56; Jeanette George, 63, who operated Ttjenej Senior referral Agency; Titis “Titus’ Jackson, 40, and Carla Philipps-Williams, 45, who were also marketers of the now-inactive Rosner that did business in Skokie, Illinois until 2013.
Judge Darrah ordered Magsino to surrender to the United States Marshal of the Northern Illinois District before 2:00 p.m, on Monday, July 25, 2016, to begin his confinement.
$13M claims to Medicare
Previously filed complaints showed that Rosner was paid approximately $13 million for claims submitted to Medicare for home health services between January 2008 and January 2012. However, it was not specified how much of the Rosner’s total billings were fraudulent.
The complaints filed in August 2012 showed that between March and July 2012 alone, the following co-defendants received the amount of kickbacks listed: Nwaokocha, $4,800; Syed, $1,500; Jackson, $24,000; George, $13,500; and Phillips-Williams, $3,000.
Magsino who originally pleaded not guilty to the 26-count federal complaint, changed his plea, and his lawyer, Eugene Steingold, entered his guilty plea on one count on April 16, 2014. Magsino admitted committing federal offenses for paying bribes and kickbacks in exchange for the referral of Medicare patients for home health care services to his company, Rosner, for which payment was made in whole or in part under Medicare.
Tolentino and Hernal are due for sentencing separately in April. The case has been heard in court no fewer than 72 times in the past three and a half years, which prompted anti-Medicare fraud advocates to demand a more “cost-effective’ prosecution of fraudulent home health care providers.
“This is a great drain to taxpayers’ money and, more importantly, another imposition of additional restriction to access on affordable care especially for seniors and disabled citizens,” said a president of a medical association in Chicago.
Disgust from community
Members of the Chicago Filipino community have repeatedly expressed their disgust over the continuing reports of indictments of health care providers accused of Medicare rules violations that included fraudulent billings and engaging in bribery and kickbacks to increase their census of patients.
Recent indictments included that of Josefina Tinimbang of Donnarich, Josdan and Pathway Home Healthcare companies, who along with her associates and co-conspirators, was indicted last June 14 of Medicare fraud involving a staggering $45 million.
Last August 27, owners and operators of HCN Home Health Care in Chicago were slapped with a 23-count federal indictment of overbilling and kickback schemes, which allegedly cost Medicare $6 million.
(The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.)
To learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.)
Masons disappointed
On March 1, Magsino’s lawyer presented to the court in a pre-sentencing hearing letters from his clients friends that highlighted Magsino’s charitable contributions and civic involvement in an effort to influence Judge Darrah to give his client a lighter sentence. Magsino’s felony conviction which is of conspiracy and of violating the anti-kickback statute carries a maximum penalty of five years in prison and a $250,000 fine.
Some Filipino American members of the Masonry fraternity to which Magsino and Hernal belonged are more concerned about the negative impact of his conviction to the reputation of their group.
“This is not the first time a brother is imprisoned for illegal activities and it is sad because Masons should be model of moral and ethical behavior. First prerequisite for one who petitions for membership is that you believe in God,” bewailed a high-ranking official of the Filipino Association of Masons.
“It’s about time that this requirement should be taken seriously,” he added.
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