News and Press Releases

dunn couple indicted in medicaid and tax fraud

FOR IMMEDIATE RELEASE
June 22, 2012

RALEIGH - United States Attorney Thomas G. Walker announced that a Federal Grand Jury returned a Criminal Indictment charging a husband and wife in a health care and tax fraud case.   JOHN CURTIS ALSPAUGH, 61, and HELEN BLUE ALSPAUGH, 56, were each charged with conspiring to defraud the United States (relating to tax fraud)(Count 1), in violation of Title 18, United States Code, Section 371, and 8 counts of failure to truthfully account for and pay over withholding and Social Security taxes (Counts 2-9), in violation of Title 26, United States Code, Section 7202.  In addition, JOHN CURTIS ALSPAUGH, was charged with 16 counts of health care fraud (Counts 10-25), in violation of Title 18, United States Code, Section 1347; and 1 count of aggravated identity theft (Count 26), in violation of Title 18, United States Code Section 1028A(a)(1). 

     Today the couple was arrested.  HELEN ALSPAUGH appeared in court for her initial appearance this morning before United States Magistrate Judge Webb.  JOHN ALSPAUGH is awaiting his initial appearance.

According to the Indictment, JOHN and HELEN ALSPAUGH together owned and operated a home health care business called Basic Home Health Care, Inc.  Basic Home provided living assistance services such as bathing and dispensing of medication to patients at the patients’ homes.  During 2006 to 2007, Basic Home employed over 130 employees and failed to pay the required employment taxes to the Internal Revenue Service, which is estimated to be over $458,000 for that period alone.

The Indictment also alleges that from January, 2006, through April, 2011, JOHN ALSPAUGH engaged in Medicaid fraud by submitting false claims relating to the delivery of services.  It is estimated that approximately 3,518 false claims totaling more than approximately $141,430 were submitted. It was determined that four methods were used to submit claims fraudulently.  First, fraudulent claims were submitted to Medicaid claiming to have provided services during the time period that the patient was deceased.  Second, fraudulent claims were submitted during the time period that the patient was incarcerated. Third, fraudulent claims were submitted for services when the client had already been discharged from the care of Basic Home. Finally, fraudulent claims were billed for services that the ALSPAUGHS knew had not been provided.

Additionally, the Indictment alleges that from January 5, 2008, to September 3, 2009, and from September 22, 2006, through March 17, 2008, JOHN ALSPAUGH used the Medicaid and other identity number of another person in relation to the health care fraud.     

Maximum penalties for each count are as follows: Counts 1 through 9: Up to five years imprisonment, $250,000 fine, followed by one year supervised release,

Counts 10-25: Up to ten years imprisonment, $250,000 fine,  followed by up to three years supervised release, and,

Count 26:  Two years imprisonment consecutive to any other sentence imposed. 

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Investigation of this case was conducted by the United States Internal Revenue Service and the Medicaid Investigations Unit (MIU) of the North Carolina Attorney General’s Office in cooperation with the United States Attorney’s Office for the Eastern District of North Carolina. Assistant United States Attorney J. Gaston B. Williams is prosecuting the case along with Jacqueline M. Pérez and Ernest Michael Heavener, MIU attorneys who also serve as Special Assistant United States Attorneys.

 

 

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