California Home Healthcare CEO Convicted in Medicare Fraud Scheme

A California-based home healthcare company led by Simon Katz has been implicated in a significant case of Medicare fraud. Katz, CEO of HealthNow Home Healthcare in Hayward, California, and his wife, the former CEO, orchestrated fraudulent billing practices between 2018 and 2020. The scheme netted Katz personal profits of $300,000 and involved over $3 million in false billings to Medicare, as detailed by the United States Attorney's Office in the Northern District of California.

Following a six-day trial, Simon Katz was convicted by a federal jury for healthcare fraud, uncovering a conspiracy with his wife, Veronica Katz. Their fraudulent activities included altering medical documentation and forging physicians' signatures to manipulate Medicare payments. The trial revealed Katz's attempt to obstruct an investigation in October 2019, instructing employees to fabricate training and supervision by a Registered Nurse.

United States Attorney Craig H. Missakian criticized Katz's actions for causing substantial taxpayer losses. Special Agent in Charge Scott Schelble of the FBI's San Francisco Field Office highlighted the peril this fraud posed to vulnerable patients and federal healthcare programs. The FBI is working closely with partner agencies to combat such healthcare fraud. Robb R. Breeden, from the HHS OIG San Francisco Regional Office, affirmed the agency's commitment to protecting Medicare's integrity. Katz, now the fourth person convicted in the ongoing investigation, is detained federally, facing up to 20 years imprisonment and a $250,000 fine, pending a sentencing date.