A Los Angeles County man faces sentencing Friday for his role in an $18.5 million scheme that submitted fraudulent claims to the state’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students.
Gregory Hearns, 67, of Compton, was found guilty at trial last year of one federal count of health care fraud. He was acquitted of 10 additional counts, according to the U.S. Attorney’s Office.
With Hearns’ guilty verdict, a total of 19 people have been convicted of federal criminal charges stemming from fraudulent bills submitted by a Long Beach company — the non-profit Atlantic Recovery Services, later called Atlantic Health Services — that provided substance use disorder treatment services to students at local high schools and middle schools through Medi-Cal and its Drug Medi-Cal program, prosecutors said.
Hearns acted as the billing supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal, evidence showed.
The government recommends that Hearns receive a 70-month prison sentence. His attorneys are asking for a non-custodial penalty.
According to documents filed in Los Angeles federal court, the participants in the ARS scheme defrauded the Drug Medi-Cal program by submitting bills for services to students who did not medically need alcohol or drug treatment. ARS also billed Drug Medi-Cal for group and individual counseling sessions that were not provided or did not meet the requirements for reimbursement. To support the false billings, ARS employees falsified numerous documents.
The former president and chief executive officer of ARS — Richard Ciampa, 69, of Commerce — pleaded guilty to federal charges two years ago and was sentenced to seven years in federal prison.
During the four-year period that ended in March 2013, ARS submitted false and fraudulent claims of just over $18.5 million, and Drug Medi-Cal paid $17,635,100 on those claims, according to the U.S. Attorney’s Office.
Gregory Hearns did not accept culpability because he’s innocent. Trust me. If he was benefitting from or participating in this fraud he wouldn’t have been so broke. He is a great guy and a good person.