An east-coast physician who provided in-home services for the elderly pleaded guilty to Health Care Fraud yesterday in U.S. District Court in Trenton, New Jersey.
Doctor Lori Reaves, age 52, who lives in the city of Waterford Works, reversed her original ‘not guilty’ plea, and entered a plea of ‘guilty’ of Insurance Fraud before U.S. District Judge Freda Wolfson in federal court.
Reaves admitted that – for a four-year period between January ’08 and November, 2011 – she generated thousands of fraudulent Medicare bills. Specifically, she grossly exaggerated the amount of time she was spending with each patient. Her scam netted than $500,000 in criminal profits.
According to investigators, Reaves routinely submitted bills that were coded as though she were spending as long as two hours with home-bound patients. In reality, her typical visit was less than 15 minutes.
Court records revealed that none of the 24,000 other physicians in the state of New Jersey billed anywhere near the same amount.
Reaves could be sentenced to 10 years in prison when she is sentenced in July.
* * *
Before her life of crime, Lori Reaves attended Kirksville, Missouri College of Osteopathic Medicine. She is board-certified in geriatric and family medicine. She is credited with founding the Visiting Physicians of South Jersey.
According to her website, Lori Reaves was named Doctor of the Year by the American Academy of Home Care Physicians, in 2005.
Three years later she embarked on a scheme to steal hundreds of thousands of dollars from the U.S. taxpayers.
MedicalMiscreants thanks the FBI agents in Newark, under the direction of David Velazquez; Agents of the Department of Health and Human Services; Office of Inspector General’s Agent Tom F. O’Donnell of New York.
This case was prosecuted by Assistant U.S. Attorneys Deborah Gannett and R. David Walk, of the Health Care and Government Fraud Unit in Newark.
# # #