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Owner of Detroit home health agency convicted in $1.6 million health care fraud scheme

Editha Manzano convicted of conspiring to commit health care and wire fraud

DETROIT – A federal jury found a Detroit home health agency owner guilty for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided, officials said.

Editha Manzano, 69, of Troy, Michigan, was convicted Monday of one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries and one count of health care fraud following a seven-day trial.

Sentencing has been scheduled for April 19 before U.S. District Judge Gershwin Drain of the Eastern District of Michigan, who presided over the trial.

According to evidence presented at the trial, from 2013 to 2016, Manzano and her co-conspirators engaged in a scheme to defraud Medicare of approximately $1.6 million in fraudulent claims for home health care services in connection with Anointed Care Services, a Detroit area home health care agency.

Evidence showed Manzano paid illegal kickbacks for patients to sign up for home health care with Anointed. The evidence further showed that Manzano conspired with physicians to admit patients for home health care with Anointed when they did not qualify for such services.

To make it appear that the patients qualified, Manzano and her co-conspirators falsified medical records and signed false documents purporting to show that patients admitted to Anointed’s home health program satisfied Medicare’s requirements for admission, the evidence showed.

Four additional people were charged:

  • Liberty Jaramillo, 67, of Troy, Michigan, pleaded guilty in June 2017 and is awaiting sentencing.
  • Dr. Roberto Quizon, 71, of Bloomfield Hills, Michigan, pleaded guilty in June of 2017 and is awaiting sentencing.
  • Dr. Victoria Gallardo-Navarra, 74, of Bloomfield Hills, Michigan was acquitted after trial.
  • Juan Yrorita, RN, 63, of Sterling Heights, Michigan, pleaded guilty during trial and is awaiting sentencing.