A Kenyan-born nurse, Winnie Waruru, is facing a significant prison sentence after pleading guilty to a
$100 million home healthcare fraud and kickback scheme.
Waruru pleaded guilty in Boston on September 8, 2022, in federal court and will be sentenced on
Thursday, January 12, 2023. Waruru, 42, pleaded guilty to one count of conspiracy to commit health
care fraud; one count of health care fraud – aiding and abetting; one count of conspiracy to pay and
receive kickbacks; two counts of making false statements; and one count of making a false statement in
a health care matter.
Waruru pleaded guilty before US Senior District Court Judge George A. O’Toole Jr, who scheduled her
sentencing for January 12, 2023, according to a release by US Attorney Rachael Rollins. She was arrested
in February 2021 and charged with her Kenyan co-accused, Faith Newton, who has denied the charges
and is pending trial.
According to detectives, between January 2013 and January 2017, Waruru and Newton used their
company, Arbor Homecare Services LLC, as a conduit to siphon $100 million from MassHealth and
Medicare – a program that provides health coverage primarily for people with low incomes – by
claiming refunds and filing false statements. They then closed down the company.
MassHealth, which has a budget running into billions of dollars, pays for personal care attendants,
medical equipment, and specific prescription, has been a target of swindlers who first apply to become
providers through registered companies. The healthcare company nurses are supposed to attend to
vulnerable members and then bill the program for reimbursement.
Both Waruru and Newton were accused of “conspiracy to commit health care fraud” and of billing for
healthcare services that they never provided. They are also charged with making false statements to
MassHealth.
The federal government has filed a civil action to seize the duo’s properties and freeze their bank
accounts, which held millions of dollars. Before the law caught up with them, Waruru and Newton, 52,
lived ostentatious lifestyles in America. They drove luxury cars like a Maserati and a Range Rover, kept
their lives private, and had few Kenyans knew about the two nurses whose fortunes seemed endless.
In addition to their lavish lifestyles, they had five properties in the US and operated 40 bank accounts.
The court records indicate that they also alleged to have 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 did not occur.
“As alleged in the civil complaint, Newton either directly or through Arbor, targeted particularly
vulnerable patients who were low-income, on disability and/or suffering from depression and/or
addiction,” US Attorney’s Office added.
Prosecutors say Waruru and Arbor billed MassHealth for Waruru’s skilled nursing visits, many of which
she did not perform, were medically unnecessary, or were not approved by a physician.
Waruru, who faces up to 15 years in prison, was personally responsible for causing Arbor to bill
MassHealth for over $1.2 million in skilled nursing visits, much of which was fraudulent. She also passed
cash payments allegedly from Newton to two Arbor patients to retain those patients.
The sentencing of Waruru on January 12, 2023, will send a strong message to others who may be
tempted to engage in similar criminal activities. It is also a warning to healthcare providers to ensure
that they are fully compliant with all regulations and laws.
