Hamden Woman Admits Defrauding Medicaid Of More Than $1.6M: Feds

HAMDEN, CT — A Hamden woman who owned a counseling business in North Haven has pleaded guilty to defrauding Medicaid of more than $1.6 million, according to officials.

Rachel Collins, 44, waived her right to be indicted and pleaded guilty Tuesday in Hartford federal court to health care fraud, U.S. Attorney for Connecticut Vanessa Roberts Avery announced in a joint news release with Robert Fuller, Special Agent in Charge of the New Haven Division of the FBI, and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services.

According to court documents and statements made in court, Collins was a state-licensed professional counselor and owner of Rachel Collins, LPC Counseling Services LLC, in North Haven.

Collins provided psychotherapy to children, adolescents, and adults, but particularly children and adolescents with a variety of behavioral and mental health issues. She was enrolled individually as a Behavioral Health Clinician provider in the Connecticut Medicaid Program.

“Between January 2018 and March 2024, Collins submitted and caused to be submitted fraudulent claims to Medicaid for psychotherapy services that were purportedly provided to his Medicaid clients,” officials wrote in a news release. “Specifically, Collins submitted claims under her own billing and performing provider identification number for dates of service when no services of any kind had been provided to the Medicaid clients identified in the claims.

“Collins submitted claims for purported dates of service when she was purportedly working as a full-time clinician for another provider; billed for 12 hours of purported services in a day and, in some cases, 24 or more hours in a day; submitted false claims for dates when she was traveling out of state, during national holidays, and on weekends; and submitted claims after she had stopped treating the claimed client, had never treated the claimed client, or the claimed client was in the hospital.”

Through the scheme, authorities said Collins defrauded Medicaid of $1,647,031.

As part of her plea, Collins has agreed to pay full restitution. She also has agreed to forfeit $114,085 that was seized from a bank account during the investigation, according to officials.

Collins is scheduled to be sentenced on Oct. 30, when she faces a maximum term of 10 years in prison, officials said.

Collins is released on a $100,000 bond pending sentencing.

Anyone who suspects health care fraud is encouraged to report it by calling 1-800-HHS-TIPS.