FBI Lakeview Investigation End

Working Copy . Page 1 Precedence: ROUTINE Date: 04/28/1998 To: Boston From: SAI I Bedford RA gig Contact: Approved By: I Drafted By: :ljc Case ID Title: LAKEVILLE NEUROREHABILITATION CENTER, formerly MEDICO, Effingham Falls, HCF be b7c Synopsis: Contact with SA (C44) regarding captioned matter. Enclosures: Attached to this EC are LHM's relating to the NEW MEDICO investigation (file number - :1uding a letters, dated 10/19/1994, by AUSA and 05/05/1995, by U.s. Attorney n16 attached is a closing LHM, dated 10/18/1995, SA and a synopsis -relating to the NEW MEDICO facility known as HIGHWATCH REHABILITATION CENTER (currently known as LAKEVIEW NEUROREHABILITATION CENTER). Details: On 04/07/1998, the writer contacted SA regarding captioned matter as it rp1arac +n the closed NEW MEDICO anesticrat'inn to which SAI had been assigned. SA advised that LAKEVIEW NEUROREHABILITATIO CENTER was previously known as HIGHWATCH REHABILITATION CENTER when it was owned by NEW MEDICO. She stated that NEW MEDICO, which is no longer in existence, had owned approximately 40 facilities located in 15 states. An eight day search warrant was executed at NEW main facility located in Lynn, MA, on 10/22/1992. A search warrant was also conducted at NEW administrative office located in Goshen, NY, on 10/22/1992.' After receiving information that HIGHWATCH was shredding records at that facility, she stated that a search warrant was executed at HIGHWATCH on 12/22/1992, relating to administrative and patient records. She stated that several interviews were also conducted at HIGHWATCH pursuant to the search warrant Tn dition to allegations of fraudulent billing, SA stated that there were al egations of patient ab se and neglect. She added that was an at HIGHWATCH at that time in 1992. SA advised that patients at HIGHWATCH received health care benefits primarily through private insurance carriers with Case ID Serial 4 Working Copy Page 2 few patients receiving Medicare benefits. SA advised_that an extensive investigation regarding NEW MEDICO revealed considerable indication of fraud and abuse within the NEW MEDICO organization. However, she stated that there did not appear to be sufficient evidence to support proof beyond a reasonable doubt of criminal bf intent on the part of the senior officials of the organization. b?c Therefore, she stated that the United States Attorney?s Office, District of Massachusetts, declined prosecution of the corporation and its senior officials. 'This declination is documented in the LHM, dated 05/05/1995, by U.S. Attorney I