A Chapel Hill resident faces convictions on charges to defraud private health insurers with the help of Florida businesses, the U.S. Department of Justice announced on Monday.

A release from the department said a federal jury formally convicted Jaroslava Ruiz last Thursday for submitting more than $34.6 million in false claims for physical therapy services. Evidence presented during trial indicated the 50-year-old paid kickbacks and bribes to patients and patient recruiters for submitting claims with four Miami, FL. businesses — despite physical therapy never being provided.

Ruiz is registered at an address off Farrington Road — a Chapel Hill address within Durham County. A report from The News & Observer said court filings indicate the fraud happened while Ruiz was living in Miami-Dade County in Florida.

The U.S. Department of Justice said Ruiz falsified medical records to indicate the services were “medically necessary” and actually happened at the Miami physical therapy clinics.

“In truth and fact,” read the federal release, “none or virtually none of the purported services had been provided. Ruiz and her co-conspirators submitted approximately $34.6 million in false and fraudulent claims to several private insurers for those nonexistent physical therapy services, of which the insurers paid approximately $7.7 million.”

The federal jury convicted Ruiz on nine counts of health care fraud and one count of conspiracy to commit health care fraud. As a result, she faces up to 20 years in prison on the conspiracy count, as well as 10 years per count of health care fraud. The Justice Department said a federal district court judge will determine the official sentence after considering the U.S. Sentencing Guidelines, with the sentencing hearing scheduled for October 26.

The Federal Bureau of Investigation is continuing to investigate the case, according to Monday’s release. Trial Attorneys Emily Gurskis and Patrick Queenan of the Criminal Division’s Fraud Section are prosecuting Ruiz’s case.

To read the full release from the U.S. Department of Justice, click here.

 

Editor’s Note: A previous version of this article incorrectly said Farrington Road is within Chapel Hill limits.

Photo by Matthias Zomer.

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