TAMARAC WOMAN CONVICTED IN $10 MILLION DOLLAR SCHEME TO DEFRAUD MEDICARE; THREE OTHERS PLEAD GUILTY

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced today that a Fort Lauderdale jury returned a guilty verdict on May 30, 2007, against defendant Yvonne May Richards, a/k/a Yvonne Howell, 59, of Tamarac, Florida. After three weeks of trial, the jury found the defendant guilty of ten (10) counts in connection with a scheme to defraud Medicare, including conspiracy to submit false claims to Medicare, conspiracy to create false medical records, conspiracy to pay kickbacks, and conspiracy to commit money laundering.

Yvonne May Richards, along with co-defendants Althea N. Graves, 37, of Stuart, Florida, Bernard R. Graves Jr., 49, of Stuart, Florida, and Neil Leder, 50, of Tamarac, Florida, were charged last year in a forty three (43) count Indictment with executing a six-year scheme to defraud the Medicare Program regarding the operation of a psychiatric partial hospitalization program at the now defunct Oakland Community Health Center Inc., formerly located in Oakland Park, Florida.

According to the Indictment and the evidence presented at trial, defendant Bernard R. Graves Jr. was the Administrator and part owner of Oakland Community Health Center Inc. (Oakland), and his wife, defendant Althea N. Graves, was the Assistant Administrator, with an undisclosed ownership interest in Oakland. Yvonne May Richards, the mother of defendant Althea N. Graves, was the Clinical Director, and was involved in running the clinical operations at Oakland. Neil Leder was a licensed clinical social worker who provided therapy services at Oakland.

The evidence established that the defendants executed an elaborate scheme to defraud Medicare by billing Medicare for psychiatric partial hospitalization services that were never performed; billing Medicare for providing psychiatric partial hospitalization services to patients who did not need, would not benefit from, or did not meet Medicare's requirements for receiving the services; and billing Medicare for psychiatric partial hospitalization services that were performed by unlicensed personnel. In addition, the evidence established that the defendants perpetrated the scheme by causing a variety of false medical records to be prepared, including forged or altered physician admission orders and re-certifications, treatment notes and treatment plans. In addition, the defendants directed physicians and therapists employed at Oakland to create false patient evaluations, treatment notes and treatment plans. As a further part of the scheme, the Graveses and Richards paid kickbacks to assisted living facilities to send their residents to Oakland for psychiatric partial hospitalization services.

According to the evidence used during trial, Oakland submitted requests to Medicare to pay personal living expenses of the Graveses disguised as business expenses of Oakland. These personal expenses included part of the cost of building and furnishing the Graveses elaborate residence, the salary of their nanny, and costs of running a medical equipment business the Graveses also owned. Indeed, between 1996 and 2003, Oakland submitted requests for reimbursement to Medicare claiming operating costs of more than $25 million. As a result of these claims, Medicare paid Oakland just under $10 million.

Defendants Bernard Graves and Althea Richards entered pleas of guilty to the charge of conspiracy to make false documents relating to health care matters on April 24, 2007. They are scheduled for sentencing before Judge William Dimitrouleas on July 6, 2007. Pursuant to their plea agreements, they are facing a maximum sentence of 5 years' imprisonment , $10,000,000 fine and restitution of $5,000,000.

Defendant Neil Leder entered a guilty plea to the charge of conspiracy to make false documents relating to health care matters on February 15, 2007, and is pending sentencing before Judge Marcia Cooke on June 6, 2007. Pursuant to his plea agreement, Leder is facing a maximum sentence of 5 years' imprisonment.

Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Robert N. Nicholson and Roger H. Stefin.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.