Four Plead Guilty in $9 Million Medicaid Fraud Scheme in Pennsylvania

Court News

HARRISBURG, PA — In a substantial crackdown on Medicaid fraud, Attorney General Michelle Henry announced that four individuals have been sentenced after admitting to their roles in a nearly $9 million scheme that exploited the Medicaid system. The fraudulent operation primarily involved overcharging for non-medical transportation services that were seldom utilized and medically unnecessary, spotlighting a glaring abuse of resources meant for the vulnerable populations of Pennsylvania.

The scheme was orchestrated through three Philadelphia-based service coordination agencies—Brighter Care Services, Pennsylvania Service Coordination Agency, and Pennsylvania Development Agency—alongside a non-medical transportation service, Rides Your Way. Owners Jason Alexandre, Rex Barr, Earlson Satine, and Natasha Hudson were implicated in this sophisticated operation that siphoned off millions from Medicaid.

Jason Alexandre, at the helm of Brighter Care, received a sentence ranging from one to three years in prison, coupled with seven years of probation and an order to pay $1.63 million in restitution. Rex Barr, who operated Rides Your Way, is subject to five years of probation and 100 hours of community service, having already repaid $2 million and committed to repaying an additional $1 million.

Attorney General Henry condemned the actions of the defendants, highlighting the detrimental impact of their actions on Pennsylvanians in dire need of the services Medicaid provides. This case sheds light on the broader implications of such fraud, not just as a financial drain on the healthcare system but as a direct theft from those most in need.

Investigations by the Office of Attorney General revealed that the defendants manipulated Medicaid’s reimbursement system by enrolling participants in Rides Your Way’s high-cost transportation plans without assessing the necessity of these services. The alarming discrepancy between the Medicaid reimbursements received and the actual services rendered—over $7.9 million claimed for providing only 1,712 rides—underlines the scale of the deceit.

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Additionally, Alexandre and Satine inflated Medicaid bills by over $2 million for services that were never provided, further illustrating the extent of their fraudulent activities.

The 45th Statewide Investigating Grand Jury played a crucial role in bringing these individuals to justice, recommending charges that ultimately led to their guilty pleas.

Earlson Satine faced severe repercussions for his involvement, receiving a sentence of 1½ to 5 years in state prison and being ordered to pay $2.8 million in restitution. Natasha Hudson’s sentencing to four years’ supervision, with the initial 11 ½ months under house arrest, following her guilty plea to two misdemeanor counts of theft, wraps up the legal proceedings against the group.

This case, prosecuted by Senior Deputy Attorney General Benjamin McKenna, marks a significant victory in the fight against healthcare fraud in Pennsylvania.

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