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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Ohio

FOR IMMEDIATE RELEASE
Monday, January 23, 2017

Mother and son convicted of $7 million healthcare fraud scheme

A mother and son were convicted of crimes related to a $7 million home healthcare fraud conspiracy in which they provided forged documents and fraudulent forms to bill for services that were not provided.

Delores L. Knight, 70, of Cleveland Heights and Isaac R. Knight, 29, of Macedonia were convicted following a trial of conspiracy to commit healthcare fraud and health care fraud. Delored Knight was also convicted of multiple counts of money laundering.

Delores Knight owned Just Like Familee II, Inc., and Just Like Familee III, Inc., which she incorporated in 2005 and 2006, respectively, to provide home health services for elderly and disabled clients. Isaac Knight served as manager. The companies had locations at various times in Cleveland Heights, Twinsburg and Mentor, according to court documents.

Together they defrauded Medicaid, Medicare and the Department of Veteran Affairs out of more than $7 million as a result of the conspiracy in which they prepared and submitted forged or false records in support of previously submitted and reimbursed billings for patients they did not actually provide face-to-face services, according to trial testimony and court documents.

“These defendants stole millions of dollars by billing for services they never provided,” said U.S. Attorney Carole S. Rendon. “We will do our best to get whatever assets they have and make sure they go to prison.”

The defendants are expected to be sentenced later this year.

Prosecutors are seeking to forfeit all money that was illegally obtained, as well as a home at 1048 Morning Glory Drive in Macedonia owned by Delores L. Knight.

This case was prosecuted by Assistant U.S. Attorneys Mark Bennett and James L. Morford and Special Assistant U.S. Attorney Maritsa Flaherty following an investigation by the Department of Health and Human Services, the FBI, the IRS, the Department of Veteran’s Affairs and the Ohio Attorney General’s Office.

Topic(s): 
Financial Fraud
Healthcare Fraud
Component(s): 
Updated January 23, 2017