Phony nonprofit defrauded Medicare of $430,000
by Associated Press, May 13, 2019
A New Jersey man who defrauded
Medicare by using the promise of ice cream to lure older adults into genetic
testing has been sentenced to more than four years in prison.
Seth Rehfuss had pleaded
guilty to one count of conspiracy to commit health care fraud. U.S. District Judge Anne
Thompson also ordered Rehfuss to pay restitution of about $435,000 and forfeit
more than $66,000.
Prosecutors alleged the
44-year-old Somerset resident and others used a nonprofit, the Good Samaritans
of America, to gain access to older adult housing complexes where they would persuade residents to submit to genetic tests.
Rehfuss would advertise
he was serving free ice cream to lure residents to the presentations, according
to a criminal complaint. The residents were told the tests would help them
guard against heart attacks, cancer and other illnesses.
Rehfuss and his fellow
conspirators paid health care providers to authorize the tests even though the
providers hadn't examined the patients. Prosecutors alleged they found the
providers by placing ads on Craigslist.
The group allegedly
defrauded Medicare out of $430,000 and made more than $100,000 in commissions
from laboratories.
Sheila Kahl, 47, of Ocean
County, N.J., and Kenneth Johnson, 39, of Lorton, Va., also have pleaded guilty
and are scheduled to be sentenced this month.
According to the U.S.
attorney's office, the group had planned to expand the scheme to other states.
AARP’s Fraud Watch
Network can help you spot and avoid scams. Sign up for free “watchdog alerts," review our scam-tracking map, or call our
toll-free fraud helpline at 877-908-3360 if you
or a loved one suspect you’ve been a victim.
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