Eight Charged in Medicaid Fraud Sweep

DA will seek full restitution from defendants who stole more than $265,000 from taxpayers

MINEOLA, NY - Nassau County District Attorney Kathleen Rice announced today that a sweep targeting county residents who steal undeserved Medicaid and public assistance benefits has resulted in the arrest of eight people who stole more than $265,000. The sweep was the result of a joint investigation by the District Attorney’s Medicaid Fraud Unit and the Nassau County Department of Social Services.

“We will be seeking full restitution for the money these defendants stole from the taxpayers,” Rice said. “With the help of the Department of Social Services, we will aggressively prosecute these individuals who attempted to abuse a healthcare system set up to protect our society’s most vulnerable members.”

Medicaid is a state-run program that provides free public health insurance to more than 40 million low-income individuals nationwide. It is funded jointly by federal, state, and the county government. Restitution from fraud cases, such as these, is returned to the funding agencies, with approximately 25 percent going to the state and another 25 percent going to the local county. 

The U.S. Government Accountability Office estimates that 10 percent of health care spending is lost to fraud and abuse. Nassau County spends in excess of $1 billion per year to fund its portion of the Medicaid mandate and New York State’s $45 billion annual bill is more than any other state in the country.

In April 2007, Nassau County District Attorney Rice created a Medicaid Fraud Unit within her office. To date, the unit has been responsible for 26 arrests, connected to more than $1.16 million in fraud and more than $292,000 in potential restitution to Nassau County.

Charged in the most recent sweep are:

• Robert, 52 and Michele Farkas, 51, of Freeport, were arrested Jan. 29 and both charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, Possession of a Forged Instrument in the Second Degree, and two counts of Offering a False Instrument for Filing in the First Degree. Rice said that between March 2003 and April 2007, the Farkases received more than $50,000 in Medicaid benefits that they did not qualify for because Robert claimed to be earning $28,000 when in reality, he owned his own business and earned between $60-70,000 a year. They each face up to 7 years in prison. Robert Farkas is represented by William Kephart, Esq. Michele Farkas is represented by Brian Griffin, Esq.

• Michelle Archer, 41, of Westbury was arrested Feb. 9 and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and Offering a False Instrument for Filing in the First Degree. Rice said that between January 2004 and March 2008, Archer stole more than $35,000 in undeserved Medicaid benefits by claiming her household income was $25-30,000 a year. In reality, it was approximately $85,000 and her husband had three brokerage accounts with an average of $210,884. She faces up to 7 years in prison. She is represented by Karen Charrington-Medard, Esq.

• Pablo, 47, and Roxana Villanueva, 52, of Bethpage were arrested February 25 and charged with Grand Larceny in the Third Degree, Welfare Fraud in the Second Degree, Possession of a Forged Instrument in the Second Degree, and four counts of Offering a False Instrument for Filing in the First Degree. Rice said that between April 2005 and March 2008, the Villanueva’s stole more than $28,000 in Medicaid benefits by claiming their household income was less than $20,000 and paid a monthly rent of $1,000. In reality, they deposited more than $473,000 into their bank accounts during the time of the Medicaid theft and own their own home. Each faces up to 7 years in prison. Both are represented by Kimberly Lerner, Esq.

• Melba Casallas, 61, of Glen Cove was arrested yesterday and charged with Grand Larceny in the Second Degree, Welfare Fraud in the Second Degree, and five counts of Offering a False Instrument for Filing in the First Degree. Rice said that between October 2007 and December 2008, Casallas stole more than $78,000 in Medicaid benefits by claiming that she earned only $150 a week on one form, and claiming that she was unemployed on subsequent forms. In reality, Casallas owns her own home and a salon business in Glen Cove, with additional rental income from a tenant. She faces up to 15 years in prison. She is represented by Charles McQuair, Esq.

• Orfilia Garcia, 32, of Hempstead will be charged, pending her arrest, with Grand Larceny in the Fourth Degree, Welfare Fraud in the Fourth Degree, three counts of Possession of a Forged Instrument in the Second Degree, and Offering a False Instrument for Filing in the First Degree. Rice said that between October 2006 and July 2007, Garcia, an illegal immigrant, failed to report that she was employed and earning income, stealing more than $1,700 in Medicaid benefits. Garcia also used a forged green card when applying for her job.

• An arrest warrant has been filed for Sandra Patino, 34, of Freeport. She is charged with Grand Larceny in the Third Degree, Welfare Fraud in the Third Degree, and Offering a False Instrument for Filing in the First Degree. Rice said that between August 2004 and February 2008, Patino claimed to be a single parent. In reality, she lives with the father of her children, they are both employed, and had a household income of $40-60,000 per year. Patino received $10,876 in Medicaid, $13,749 in public assistance, $6,066 in food stamps, and $39,312 in day care benefits based on that false information, resulting in a total theft from government programs of more than $70,000.

“DSS continues to work cooperatively with the District Attorney’s office to eliminate public welfare fraud,” said Department of Social Services Commissioner John E. Imhof.“If you try and cheat the system in Nassau County, you will eventually get caught and prosecuted to the fullest extent of the law.”

Handling the case for the District Attorney's Office is Unit Chief Andrew Weiss of the Medicaid Fraud Unit.