Faux “the Name. Fraud” the Game.

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It ‘s ironic (or maybe it ‘s not) that today ‘s fraudster ‘s last name is “Faux.” (As in fake.) True to her name, the woman faked her way through fraudulent Medicare claims, falsified patient records at her physical therapy practice and managed to falsify her company ‘s tax returns as well, avoiding nearly $80,000 in taxes in the process.

The physical therapist ‘s trouble all began when she had to provide documentation to back up 40 claims she submitted to Medicare. A contractor responsible for the audit requested additional information such as progress notes, flow/activity sheets and other documentation that proved there was a medical necessity for treatment. (As you might guess, there weren’t any records to back up her claims, so she ordered another physical therapist who worked at the practice to create the missing information requested. The practice owner also made up information to include in the files.)

The audit revealed that the physical therapist had also been skimming checks and cash proceeds for her practice and failed to declare this income on her company ‘s federal income tax returns. (She avoided paying $77,640 in taxes over three tax years.)

The 49-year-old physical therapist pleaded guilty to one count of obstruction of a federal audit and one count of making a false statement on a federal income tax return. She was sentenced to two years of probation with the first six months in home confinement. In addition, she must perform 100 hours of community service and pay a $3,000 fine along with full restitution to the Internal Revenue Service. (And that ‘s not all she has to pay.) In a related civil matter, she agreed to settle allegations that she and her physical therapy practice submitted false records by paying Medicare $50,000.

This criminal played a dangerous game with the government and lost. Investigators saw behind this woman ‘s faux fa?ßade and now she will have to deal with the real consequences of her illegal actions.

Source: Today’s “Fraud of the Day” is based on an article entitled, “Weston Physical Therapist Sentenced for Tax Fraud, Obstruction,” published by Westport Daily Voice on June 6, 2017.

WESTON, Conn. ‚A 49-year-old Weston woman who pleaded guilty to tax fraud and obstructing an audit of Medicare claims related to her Norwalk physical therapy clinic was sentenced Monday, federal prosecutors said.

Danielle Faux was sentenced to two years of probation, the first six months of which she must spend in home confinement. U.S. District Judge Stefan R. Underhill also ordered Faux to perform 100 hours of community service and pay a $3,000 fine.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.