Westford Woman Ran $100M Health Care Scam: Feds

WESTFORD, MA — A Westford woman was arrested Sunday and accused of running a $100 million home health care scheme.

Faith Newton, 52, faces numerous charges, including money laundering and conspiracy. She used some of the money to buy five properties and a Maserati sports car, among other purchases, prosecutors said.

Newton and Winnie Waruru, 41, of Lowell, ran the scheme from 2013 to 2017 out of Newton's Chelmsford-based Arbor Homecare Services home health care service, according to Massachusetts U.S. Attorney Andrew Lelling. Waruru, a nurse, was also arrested and charged.

Lelling's office did not return request for comment about how rare it is for someone to carry out a scheme of this magnitude for so long.

Prosecutors said Newton and Waruru used Arbor to defraud MassHealth and Medicare out of at least $100 million by billing for home health services that were never performed or not necessary. They targeted low-income patients, many who were disabled and suffered from depression and addiction, and paid kickbacks for referrals, prosecutors said. They added the pair also faked employment relationships with patients' families.

"Newton allegedly used the laundered proceeds of the $100 million scheme to purchase multiple homes and a Maserati and to fund investment accounts, a lavish lifestyle and numerous financial transactions," Lelling said in a statement.

A civil case against Newton seeks the forfeiture of her five properties in Westford, Chelmsford, North Andover and Dracut. It also seeks the forfeiture of 40 of her bank accounts and investments.

Newton and Waruru were charged with health care fraud, conspiracy to commit health care fraud and conspiracy to pay and receive kickbacks. Newton was also charged with money laundering conspiracy and seven counts of money laundering, while Waruru was also charged with making a false statement in a health care matter and two counts of making false statements. They were scheduled to appear in court Monday.

If convicted, they face up to 10 years in prison and a fine of up to $250,000.