Virginia Wellness Center Owner Indicted for $2 Million Healthcare Fraud

A federal grand jury returned an indictment yesterday charging a Williamsburg wellness center owner with defrauding Virginia Medicaid and other healthcare programs out of over $2 million. According to the indictment, Maria Kokolis, 45, of Williamsburg, owned and operated Pamisage, Inc., a center for integrative behavioral health and medicine, with a focus on weight management issues. Beginning in or about 2018, and continuing through February 2020, Kokolis executed a scheme to defraud and overbill various healthcare benefit programs and the Virginia Medical Assistance Program (Medicaid). She did so by charging 45 minutes to an hour of face-to-face psychotherapy services for noncomparable services like sending messages through the company’s smartphone app or monitoring a client’s data. Kokolis billed these psychotherapy services for times when she was out of the country on vacation and when the clients were out of state or sick in the hospital. The overbilling became so extensive, the indictment alleges, that on 332 separate occasions, Kokolis billed for services that exceeded 24 hours in a single day. According to the indictment, Kokolis used the names, Medicaid ID numbers, and other identifying information of her clients in submitting these false claims to the healthcare benefit programs. Kokolis received a total of at least $2,189,342 in fraudulent healthcare benefit program reimbursements, a portion of which came from the US government.

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