On April 2, 2024, three defendants were sentenced to federal prison after having previously been found guilty of wire fraud and conspiracy to commit wire fraud charges following a three-week jury trial in Fort Lauderdale in relation to a fraudulent nursing diploma scheme.
Defendant 1, registrar of a nursing school in Lake Worth, Florida, was sentenced to 78 months in prison, followed by three years of supervised release, and ordered forfeiture of $861,672. Defendant 2, the owner and operator of a nursing school in Brooklyn, New York, was sentenced to 36 months in prison, followed by three years of supervised release, a $20,000 fine, and ordered forfeiture of $4,698,828. The court ordered Defendants 1 and 2 to be remanded to the custody of the US Bureau of Prisons (BOP) to begin serving their sentences.
Defendant 3, the owner and operator of a nursing school in West Orange, New Jersey, was sentenced to 33 months in prison, followed by three years of supervised release, and ordered forfeiture of $1,381,913.40. The court ordered Defendant 3 to surrender in Newark, New Jersey on April 5.
These defendants were charged along with 11 co-defendants for their involvement in a scheme to sell fraudulent nursing degree diplomas and transcripts obtained from two private nursing schools that at one time were approved by the State of Florida to issue diplomas and transcripts to individuals seeking licenses and jobs as registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs).
The bogus diplomas and transcripts qualified purchasers to sit for the national nursing board exam and, after passing it, to obtain licenses and jobs in various states as RNs and LPN/VNs. The overall scheme involved the distribution of more than 7,600 fake nursing diplomas by two nursing schools in Palm Beach County, Florida. These schools are now closed due to the excessive failure rates of its students taking the state nursing board exam. Those nursing applicants who passed the national nursing board exam used the fraudulent diplomas to obtain RN or LPN/VN licenses and nursing jobs with unwitting healthcare providers throughout the United States.
An additional 11 defendants entered pleas of guilty to conspiracy to commit wire fraud in this case. In total, 27 defendants were charged and convicted in 2023 for their participation in this nursing diploma fraud scheme, known as Operation Nightingale, that created an illegal licensing and employment shortcut for aspiring nurses.
Compliance Perspective
Issue
The purpose of a professional license is to protect the public from harm by setting minimal qualifications and competencies for safe entry-level practitioners. Nursing is regulated because it is one of the health professions that poses a risk of harm to the public if practiced by someone who is unprepared and/or incompetent. Boards of nursing established standards for safe nursing care and issue licenses to practice nursing. The selling and purchasing of nursing diplomas and transcripts to willing but unqualified individuals is a crime that potentially endangers the health and safety of patients.
Discussion Points
- Review policies and procedures for verifying the status of professional licenses. Update as necessary.
- Train appropriate staff to follow protocols for verification of licenses and certifications of employees at the time of hire and on an ongoing basis to ensure that those licenses remain up to date and are unencumbered. Ensure that training is provided to licensed personnel about their responsibility to maintain an active license and to notify administration should their license be suspended, expire, or if they are added to the OIG’s LEIE. Document that these trainings occurred, and file the signed documents in each employee’s education file.
- Periodically audit to verify that the licensing and certifications of employees are valid and up to date. Immediately address any negative findings.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
