McKnight’s reported that Aggeus Healthcare CEO James Sayadzal pleaded guilty last year to a conspiracy charge and sentenced in federal court to 366 days in prison and ordered to repay $1.77 million to Medicare.  He was one of three company officers and six doctors who defrauded Medicare related to podiatry services provided to residents of nursing homes and long-term care facilities.

Prosecutors say they carried out a broad scheme from 2009-2015 by creating an electronic medical billing system that would lead Medicare to pay for procedures that weren’t performed or wouldn’t have been covered.  Nursing homes were told that Aggeus podiatrists would treat every resident for no cost to the facility. Some Aggeus doctors then performed unnecessary procedures or billed for procedures that weren’t performed, at Gray’s urging, charging documents say.

 Aggeus owner Yev Gray was sentenced Aug. 15 to 7½ years in prison and ordered to repay $6.97 million on charges of conspiracy and making a false statement relating to health care.

Gray’s wife, Natalie Gray was sentenced in February to 366 days in prison on the conspiracy charge and ordered to repay nearly $1 million. Natalie Gray was former director of corporate and legal affairs for the company.

Aggeus once had offices in 16 states and provided podiatry and other services to thousands of patients.  Podiatrists and nursing homes had complained about inaccurate medical notes or potential fraud.

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