Springfield Man Allegedly Defrauded Medicare Out Of $7 Million

Springfield, NJ -- A Springfield man today admitted his role in a scheme that used bogus records and unqualified home health aides to defraud Medicare out of $7 million, U.S. Attorney Paul J. Fishman announced.

Paul Mil, 66, was involved with two Union County health care organizations. He was the owner of People Choice Home Care Inc., a home health care agency located in Elizabeth, that provided home health aides and health care services to New Jersey residents, which is subsidized under the New Jersey Medical Assistance Program (Medicaid).

He was also the registered agent for HHCH Health Care Inc. in Linden, a home health care agency owned by Irina Krutoyarsky, 61, of Springfield.

Home health aides visit patients at their homes and provide a variety of services, such as assistance with eating, dressing and grooming.

Mil, Krutoyarsky and others lied about having qualified home health aides and billed Medicaid for services not actually rendered to patients, according to Fishman.

“In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients,” Fishman said. “In certain instances, home health aides gave cash kickbacks to patients who were also participating in the scheme.”

In total, Mill and other others defrauded Medicaid out of $7 million and used the proceeds to purchase real estate and personal property, the report says.

Additionally, between 2007 and 2011, Mil allegedly cheated the IRS out of approximately $918,000 in taxes due and owing.

Mil pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to commit health care fraud, money laundering and tax evasion.

Nine other individuals, including Krutoyarsky, have already pleaded guilty to their respective roles in the scheme.

The conspiracy and money laundering counts to which Mil pleaded guilty each carry a maximum potential penalty of 10 years in prison. The tax evasion count carries a maximum potential penalty of five years in prison. Each charge carries a potential $250,000 fine.

Sentencing is scheduled for May 3. In addition, Mil will be ordered to pay a $7 million forfeiture money judgment to the United States and to forfeit six homes and properties in New Jersey and New York, as well as hundreds of thousands of dollars seized from bank accounts he controlled.