Clinic Manager Convicted in $8M Medicare Fraud Kickback Scheme

A federal jury in the Eastern District of New York has convicted a New York clinic manager for her role in an $8 million healthcare fraud conspiracy that exploited Medicare through a sophisticated kickback scheme involving ambulette drivers. According to evidence presented at trial, Olga Popovych, 43, managed several physical therapy clinics that paid cash kickbacks to drivers who recruited Medicare beneficiaries and transported them to the clinics. Between 2018 and 2020, Medicare paid the clinics more than $8 million for services that were either unnecessary or never performed.

Prosecutors demonstrated that Popovych was personally involved in paying the cash kickbacks and falsified medical records to show that physical therapists who were not actually present at the clinics had treated the patients. Witnesses testified that Popovych exchanged text messages with co-conspirators using code words to discuss the payment of kickbacks. The evidence also showed that she suspected law enforcement was monitoring the clinics and took active steps to conceal the scheme.

The jury convicted Popovych of conspiracy to commit healthcare fraud, conspiracy to make false statements relating to healthcare matters, four counts of healthcare fraud, and three counts of making false statements. She faces a statutory maximum penalty of 10 years for each healthcare fraud conviction and 5 years for each false statements conviction. While this case was a criminal prosecution rather than a qui tam civil action, it underscores the governments aggressive enforcement posture against fraudulent providers. Individuals with knowledge of similar Medicare fraud, Medicaid fraud, or illegal kickback arrangements are encouraged to consult experienced whistleblower attorneys to explore potential False Claims Act remedies.