HOUSTON (CN) – A recruiter pleaded guilty to his part in a $45 million Medicare kickback scheme and faces up to five years in federal prison, the U.S. Attorney’s Office said.
Floyd Brooks, 45, of Houston, pleaded guilty to referring patients to City Nursing Services of Texas, federal prosecutors said.
In October 2011, the company’s owner, Umawa Oke Imo, was sentenced to 27 years in prison for 39 counts of health care fraud. A federal judge also ordered Imo to pay $30.2 million in restitution to Medicare and Medicaid.
“Brooks received 32 checks totaling $13,700 for referring beneficiaries to Imo,” prosecutors said in a statement. “In turn, City Nursing billed the Medicare numbers of those referred by Brooks for $1,196,230 worth of physical therapy services that were not provided and City Nursing received at least $790,461 in payment from Medicare and Medicaid for those services.”
Brooks also admitted he referred another person to recruit for Imo, prosecutors said.
Brooks is out on bond until his Sept. 30 sentencing hearing.
Besides prison time he faces a $250,000 fine.