Florida Man Sentenced to 24 Months for Laundering Proceeds of Health Care Fraud Scheme

NEWARK, N.J. – A Florida man was sentenced to prison for laundering the proceeds of a health care fraud and kickback scheme involving durable medical equipment (DME) that caused millions of dollars in losses to Medicare and other insurance providers, Acting U.S. Attorney and Special Attorney Alina Habba announced.

Thomas Farese, 83, of Fort Lauderdale, Florida, was sentenced to 24 months in prison followed by 6 months of home confinement. Farese previously pleaded guilty before U.S. District Judge Michael E. Farbiarz to a Superseding Information charging him with money laundering.

According to documents filed in this case and statements made in court:

Farese invested in a DME supply company that was owned and operated by Aaron Williamsky, Nadia Levit, and others involved in a large-scale health care fraud and kickback scheme that involved billing Medicare and other insurers for DME—including orthotic knee, elbow, and back braces—that the receiving patients did not want or need. In April 2019, Williamsky, Levit, and others were arrested and charged for their roles in the scheme. Farese learned of their arrests and fraudulent conduct shortly thereafter and communicated about it with his business partner, Patsy Truglia, who has been convicted for his role in the scheme. Farese then received into his bank account $495,000 in proceeds of the scheme.

In addition to the prison term, Judge Farbiarz sentenced Farese to three years of supervised release (including the 6 months of home confinement) and to pay $1,314,000 in restitution to the victims. Judge Farbiarz also ordered forfeiture of $495,000, which constituted proceeds of the health care fraud scheme.

Acting U.S. Attorney and Special Attorney Habba credited special agents of the Federal Bureau of Investigation, Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and the Department of Defense, Defense Criminal Investigative Service, under the direction of Christopher Silvestro, with the investigation.

The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Health Care Fraud & Opioids Abuse Prevention Unit in Newark and Darren C. Halverson, Acting Assistant Chief of the Criminal Division’s Fraud Section.

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Defense counsel: James R. Froccaro, Esq.