Owner of Home Healthcare Company Convicted of Multimillion Dollar Healthcare Fraud Scheme

A Westford woman was convicted Friday, July 19, 2024, following a nine-day jury trial in federal court in Boston in connection with a home healthcare fraud scheme. Faith Newton, 56, was convicted of one count of conspiracy to commit healthcare fraud, one count of healthcare fraud, and three counts of money laundering. The jury found the defendant not guilty on one count of money laundering conspiracy. Sentencing will be scheduled at a later date. Newton was arrested and charged along with co-defendant Winnie Waruru in February 2021. From January 2013 to January 2017, Newton was a part owner and operator of Arbor Homecare Services LLC. Newton and others engaged in a conspiracy to use Arbor to defraud MassHealth of at least $100 million. Specifically, evidence at trial demonstrated that Arbor, through Newton and others, failed to train staff, billed for home health services that were never provided or were not medically necessary and billed for home health services that were not authorized. Arbor, through Newton and others, paid kickbacks for patient referrals, regardless of medical necessity. They also entered sham employment relationships with patients’ family members to provide home health aide services that were not medically necessary and routinely billed for fictitious visits that Newton knew did not occur. Newton used the laundered proceeds of the $100 million scheme to purchase a house and a Maserati.

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