{"id":25124,"date":"2016-07-09T14:37:09","date_gmt":"2016-07-09T21:37:09","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=25124"},"modified":"2016-07-09T18:10:32","modified_gmt":"2016-07-10T01:10:32","slug":"ceo-substance-abuse-treatment-program-three-others-indicted-50-million-counseling-fraud","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=25124","title":{"rendered":"CEO of Substance Abuse Treatment Program and Three Others Indicted for $50 Million Counseling Fraud"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>LOS ANGELES<\/strong><\/span><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-15368 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2015\/09\/Courtroom.jpg\" alt=\"Courtroom\" width=\"200\" height=\"181\" \/>A federal indictment named four people Friday for allegedly participating in a scheme that submitted more than $50 million in fraudulent claims to California\u2019s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">In many cases, \u00a0services were not provided at all or were provided to students who did not actually have substance abuse problems.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Two of the defendants who worked at the Long Beach-based Atlantic Health Services \u2014 formerly known as Atlantic Recovery Services, or ARS \u2014 \u00a0including President and Chief Executive Officer, Richard Mark Ciampa, were arrested Friday by federal authorities.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The superseding indictment, which charges the defendants with health care fraud and aggravated identity theft and charges Ciampa with money laundering. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">It alleges that ARS was paid more than $46 million after it submitted false and fraudulent claims for group and individual substance abuse counseling services.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cThese defendants stole tens of millions of dollars earmarked for helping children with substance abuse problems,\u201d said U.S. Attorney Eileen M. Decker. \u201cThis fraud not only harmed taxpayers, but also placed some of the most vulnerable in our society at greater risk.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The defendants named in the indictment are:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\"> 62, of Long Beach, the President and CEO of ARS who ultimately was responsible for the claims billed to Medi-Cal and received the bulk of ARS\u2019 earnings<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"><strong>Gregory Hearns<\/strong>, 60, of Long Beach, the Billing Supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"><strong>LaLonnie Egans,<\/strong> 58, of Bellflower, who managed counselors at three schools<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"><strong>Tina Lynn St. Julian<\/strong>, 52, of Compton, who worked as a counselor at two schools<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_25137\" aria-describedby=\"caption-attachment-25137\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-25137 size-medium\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/07\/Atlantic-Health-Services-828x360-300x130.jpg\" alt=\"Atlantic-Health-Services-828x360\" width=\"300\" height=\"130\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/07\/Atlantic-Health-Services-828x360-300x130.jpg 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/07\/Atlantic-Health-Services-828x360-768x334.jpg 768w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/07\/Atlantic-Health-Services-828x360.jpg 828w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-25137\" class=\"wp-caption-text\">Atlantic Recovery Services<\/figcaption><\/figure>\n<p><span style=\"font-size: 14pt;\">Egans and St. Julian were named as defendants and are expected to be arraigned on the superseding indictment in the coming weeks. Ciampa and Hearns were arraigned on the superseding indictment this afternoon in United States District Court.<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cMedical professionals who seek to enrich themselves through Medi-Cal fraud undermine this taxpayer-funded program and drive up health care costs for everyone,\u201d said <strong>Acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation<\/strong>. \u201cToday\u2019s arrests should send a clear message to all health care providers that health care fraud is a federal crime that carries serious consequences and will not be tolerated.\u201d<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">ARS received contracts to provide substance abuse treatment services through the Drug Medi-Cal program to students in schools in Los Angeles County. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The schools included various sites operated by Soledad Enrichment Action, and public schools in Montebello, Bell Gardens, Lakewood, and the Antelope Valley.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">During a 10-year period through April 2013, when ARS was shut down following a suspension of payments, ARS submitted bogus claims for payment to the Drug Medi-Cal program, according to the indictment.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Ciampa and Hearns are alleged to have caused the submission of these false claims and created an environment for rampant fraud by constantly warning ARS managers and counselors that they would lose their jobs if they did not increase the billing.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Ciampa also directed managers and counselors to bill for two crisis intervention sessions per student per month, even though crisis interventions were to be billed only if the student had relapsed or faced an imminent threat of relapse, neither of which could be planned in advance.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The claims are also alleged to have been false and fraudulent for a number of other reasons, including:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">ARS billed for services provided to students who did not have substance abuse disorders and therefore did not qualify to receive Drug Medi-Cal services<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">ARS billed for counseling sessions that were not conducted at all<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">ARS billed for counseling services that were not conducted in accordance with Drug Medi-Cal regulations regarding length, number of students, content, and setting<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">ARS personnel falsified documents, including treatment plans, group counseling sign-in sheets, progress notes, and update logs (which listed the dates and times of counseling sessions)<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">ARS personnel forged student signatures on documents.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Ciampa also is alleged to have conducted or caused others to conduct six monetary transactions involving monies ARS received as reimbursement from Medi-Cal for ARS\u2019 fraudulent claims.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">These transactions include intra-bank transfers and wire transfers among ARS bank accounts that Ciampa controlled; a transfer to Ciampa\u2019s personal account; a transfer to another individual associated with ARS; and purchase of a cashier\u2019s check for Ciampa\u2019s down payment on two Long Beach properties.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The superseding indictment also includes forfeiture allegations pertaining to these Long Beach properties and other property connected to health care fraud funds and money laundering.<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cIt is outrageous for health care executives and counselors to risk stigmatizing students as substance abusers, as alleged in this case, just to enrich themselves at taxpayer expense,\u201d said <strong>Special Agent in Charge Christian Schrank for the Office of the Inspector General of the U.S. Department of Health and Human Services<\/strong>. &#8220;Our agency will work closely with our State and other Federal law enforcement partners to guard these precious Medi-Cal dollars against fraud.&#8221;<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Previously, at least 17 other defendants have pleaded guilty to health care fraud charges or signed plea agreements stemming from the ARS scheme:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 14pt;\">Former ARS Program Manager, Lori Renee Miller, 54, of Lakewood<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">Former ARS managers Angela Frances Micklo, 57, of Palmdale<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Maribel Navarro, 49, of Pico Rivera<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Carrenda Jeffery, 65, of the Mid-City District of Los Angeles<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Cathy Fernandez, 54, of Downey<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Erin Hoover, 38, of Long Beach<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Elizabeth Black, 51, of Long Beach<\/span><\/li>\n<li><span style=\"font-size: 14pt;\"> Helsa Casillas, 45, of El Sereno<\/span><\/li>\n<li><span style=\"font-size: 14pt;\">\u00a0Sandra Lopez, 42, of Huntington Park<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Also former ARS counselors Shyrie Womack, 33, of Bellflower; Tamara Diaz, 46, of East Los Angeles; Margarita Lopez, 41, of Paramount; Irma Talavera, 27, of Paramount; Laura Vasquez, 53, of Pico Rivera; Cindy Leticia Ortiz, 30, of Norwalk; and Arthur Dominguez, 64, of Glendale.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Another defendant \u2013 Dr. Leland Whitson, 76, of Redondo Beach, the former Medical\/Clinical Director of ARS \u2013 previously plead guilty to making a false statement affecting a health care program.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The defendants who have already plead guilty are scheduled to be sentenced in federal court.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">If convicted, Ciampa faces up to 194 years in federal prison; Hearns faces up to 134 years in federal prison; Egans faces up to 32 years in federal prison; and St. Julian faces up to 42 years in federal prison.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">The defendants are presumed innocent unless proven guilty.<\/span><\/p>\n<p style=\"text-align: center;\">\n","protected":false},"excerpt":{"rendered":"<p>A federal indictment named four people Friday for allegedly participating in a scheme that submitted more than $50 million in fraudulent claims to California\u2019s Drug Medi-Cal program for alcohol and 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