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Justice News

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

Thursday, January 26, 2017

Ambulance Company Owner Sentenced for Health Care Fraud

CINCINNATI – Terry Johnson, 43, of Hamilton Ohio, was sentenced in U.S. District Court to 24 months in prison for health care fraud and money laundering in a scheme to defraud Medicare and Medicaid.


Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office, Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG), and Ohio Attorney General Mike DeWine announced the plea sentence handed down today by U.S. District Judge Michael R. Barrett.


According to court documents, Johnson is the owner and operator of Community Angels Ambulance Service, LLC, which provided medical transportation to dialysis patients from at least 2007 through 2012. He also operated the ambulance company Starlite Transportation.

For approximately seven years, Johnson fraudulently billed Medicare and Medicaid for ambulance and ambulette transports. Approximately $1.1 million was fraudulently billed to Medicare for Community Angels. The loss to Medicaid from both companies totaled more than $354,000.

In addition, Johnson was ordered to file amended personal and corporate (Community Angels Ambulance) income tax returns with the IRS for the 2008-2011 income tax years.

U.S. Attorney Glassman commended the cooperative investigation by the IRS, HHS-OIG and the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorney Timothy Mangan, who is representing the United States in this case.

Health Care Fraud
Updated February 8, 2017