A Westford woman, 56-year-old Faith Newton, has been convicted in federal court in Boston on multiple charges, including health care fraud and money laundering, related to a multi-million-dollar scheme that defrauded MassHealth. The verdict, which came on Friday after a nine-day jury trial, was announced by the U.S. Attorney's Office. Although Newton was acquitted of a single count of money laundering conspiracy, she was found guilty on one count of conspiracy to commit health care fraud, one count of furthering health care fraud, and three counts of money laundering. Her previous trial had ended in a mistrial.
Newton's arrest and charges, along with co-defendant Winnie Waruru, marked the culmination of a fraudulent operation that siphoned at least $100 million from Arbor Homecare Services LLC between January 2013 and January 2017. Evidence presented at trial showed that Arbor, under Newton and others, consistently engaged in billing malpractices, including charging for non-existent home visits, medically unnecessary services, and employing underqualified staff posing as home health aides. This extensive deceit allowed Newton to indulge in the luxuries of a lavishly appointed house and a Maserati, depleting resources meant to provide essential healthcare support for those in dire need.
"Newton deliberately orchestrated a scheme to defraud MassHealth and took advantage of her patients and their families in the process," Acting United States Attorney Joshua S. Levy stated, condemning the egregious breach of trust and exploitation of a system intended for community welfare, according to the U.S. Attorney's Office. Newton prioritized her self-enrichment over safeguarding personal and public integrity. Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) added that today's guilty verdict demonstrates the diligence with which HHS-OIG, alongside other federal entities, works to protect federal health care systems and serves as a stern warning to those considering similar illicit activities.
“Faith Newton’s flagrant greed and theft orchestrated through her healthcare fraud scheme is disgraceful," IRS-CI Special Agent in Charge Harry Chavis, Jr. stated, confirming the agency's dedication to prosecuting such crimes against taxpayers and the vulnerable populations reliant on these funds. "By stealing from MassHealth, Newton not only stole from federally-funded programs and taxpayers, but she then used those proceeds to fund a lavish lifestyle for herself," as noted by the U.S. Attorney's Office. The investigation into Newton's operation has highlighted a persistent threat to Medicare and other federal health benefits programs, plagued by fraudsters. According to Jodi Cohen, Special Agent in Charge of the FBI Boston Division, the FBI remains committed to bringing perpetrators of such schemes to justice, with the goal of preserving the integrity of America's healthcare system.
Co-defendant Winnie Waruru has pleaded guilty to her role in the conspiracy and awaits sentencing set for September 18, 2024. Meanwhile, sentencing for Faith Newton will be scheduled at a later date. She faces a potential maximum sentence of up to 10 years in prison, three years of supervised release, and fines of up to $250,000 or twice the illegal proceeds' value per charge. The actual sentencing will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines among other statutory considerations.
