2 siblings who ran several South Florida addiction treatment centers were sentenced to jail Friday for a $112 million addiction treatment fraud scheme that consisted of paying kickbacks to patients through patient employers and getting kickbacks from screening labs.
” These substance abuse treatment facility operators, through brazen techniques driven by greed, capitalized of susceptible patients looking for treatment,” stated Assistant Attorney general of the United States Kenneth A. Polite Jr. of the Justice Department’s Wrongdoer Department. “These sentences show the department’s unwavering dedication to securing patients and prosecuting deceitful substance abuse treatment centers through our Sober Houses Effort.”
Jonathan Markovich, 37, and his sibling, Daniel Markovich, 33, both of Bal Harbour, were sentenced in the Southern District of Florida to 188 months and 97 months in jail, respectively.
According to court files and proof provided at trial, the accuseds conspired to unlawfully expense for roughly $112 million of addiction treatment services that were medically unneeded and/or never ever supplied, which were obtained through prohibited kickbacks at 2 addiction treatment centers, 2nd Opportunity Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility, and WAR Network LLC (WAR), an associatedoutpatient treatment program The accuseds acquired patients through patient employers who used prohibited kickbacks to patients, consisting of totally free airline company tickets, prohibited drugs, and money payments. The accuseds mixed a core group of patients in between Compass Detox and WAR in a cycle of admissions and re-admissions to fraudulently expense for as much as possible. Patient employers offered patients prohibited drugs prior to admission to Compass Detox to guarantee admittance for detox, which was the most pricey kind of addiction treatment used by the accuseds’ centers. In addition, therapy sessions were billed for however sporadically supplied or went to, and extreme, medically unneeded urinalysis drug tests were bought, billed for,and paid Compass Detox patients were provided a so-called “Convenience Beverage” to sedate them, and to keep them returning. Patients were likewise provided big and possibly hazardous quantities of controlled compounds, in addition to the “Convenience Beverage,” to keep them certified and docile, and to guarantee they remained at the facility.
” To control and make use of patients looking for help in their most susceptible state is undesirable,” stated Assistant Director Luis Quesada of the FBI’s Wrongdoer Investigative Department. “These people managed a scheme that looked for earnings over the wellness of patients, and they will be held responsible for their actions. With the help of our police partners, the FBI continues to examine, lower these criminal business, and safeguard our residents.”
After a seven-week trial in November 2021, both accuseds were founded guilty of conspiracy to devote health care fraud and wire fraud. Jonathan Markovich was founded guilty of 8 counts of health care fraud and Daniel Markovich was founded guilty of 2 counts of health care fraud. They were likewise both founded guilty of conspiracy to pay and receive kickbacks and 2 counts of paying and getting kickbacks. Jonathan Markovich was independently founded guilty of conspiring to devote cash laundering, 2 counts of concealment cash laundering, and 6 counts of laundering at least $10,000 in profits of illegal activities. He was likewise founded guilty of 2 counts of bank fraud associated to fraudulently getting PPP loans for both Compass Detox and WAR throughout the COVID-19 pandemic.
The FBI’s Miami Field Workplace, Department of Health and Human Solutions, Workplace of Inspector General, and the Broward County Sherriff’s Workplace examined the case.
Senior Lawsuits Counsel Jim Hayes and Trial Lawyer Jamie de Boer of the Wrongdoer Department’s Fraud Area prosecuted the case.
The National Rapid Reaction Strike Force, Miami Strike Force, and Los Angeles Strike Force lead the Department of Justice’s Sober Houses Effort, which was revealed in the 2020 National Health Care Fraud Takedown to prosecute accuseds who make use of susceptible patients looking for treatment for drug and/or alcohol addiction