$6.3 million: Princewill Njoku and Clifford Ubani plead guilty to defrauding Medicare in Houston.

Special to USAfrica, Nigeria360@yahoogroups blog and USAfricaonline.com

Princewill Njoku, 51, a Nigerian-American, owner of two Houston-based healthcare companies has pleaded guilty  in connection with schemes to defraud Medicare of $6.3 million. In his plea  before U.S. District Court Judge Gray Miller in Houston, Njoku admitted that he defrauded Medicare of the huge sum.

USAfricaonline.com also learnt that the prosecuting attorneys, through court documents, showed Njoku and co-defendant Clifford Ubani (another Nigerian in Houston) hired co-conspirators to recruit Medicare beneficiaries for the purposes of filing fraudulent claims with Medicare for DME for more than $6million.

Ubani, Njoku’s business partner and co-owner of Family Services and Family Group, pleaded guilty on September 29, 2010, to conspiracy to commit health care fraud. Ubani and Njoku are scheduled to be sentenced on February 25, 2011.

Njoku, cited in court documents as an owner of Family Healthcare Services (Family Services), maintained a valid Medicare provider number in order to submit Medicare claims for the costs of durable medical equipment (DME) and purported to provide orthotics and other DME to Medicare beneficiaries.

The case showed that after Njoku and Ubani obtained Medicare beneficiary numbers, Family Services submitted claims to Medicare for DME, including orthotic devices, which were medically unnecessary and/or not provided. Many of the orthotic devices were components of what was referred to as an “arthritis kit,” and purported to be for the treatment of arthritis-related conditions, although they were not medically necessary or appropriate for such conditions. The arthritis kit generally contained a number of orthotic devices including braces for both sides of the body and related accessories such as heat pads.

Njoku admitted that he paid kickbacks to the recruiters for their referrals. Family Services submitted approximately $1.1 million in fraudulent claims to Medicare. Family Group was paid approximately $5.2 million by Medicare derived from the submission of fraudulent claims.

Additionally, Njoku was an owner and operator of Family Healthcare Group (Family Group), a home health care company. Family Group purported to provide skilled nursing to Medicare beneficiaries. According to court documents, Njoku hired co-conspirators to recruit Medicare beneficiaries for the purposes of filing claims with Medicare for skilled nursing. Family Group then used the Medicare beneficiary numbers to submit claims to Medicare for skilled nursing that was medically unnecessary and/or not provided. Njoku admitted that he paid kickbacks to the recruiters for their referrals.

At sentencing, Njoku faces a maximum sentence of 10 years in prison. The October 12 guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney José Angel Moreno of the Southern District of Texas; Special Agent-in-Charge Richard C. Powers of the FBI’s Houston Field Office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS Office of Inspector General (HHS-OIG), Office of Investigations; and Texas Attorney General Greg Abbott.

This case is being prosecuted by Trial Attorneys Charles D. Reed and Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.

news ref: USAfricaonline.com wt wire/agency/cypresstms/jtf/hhs