Over $6 Million Seized in Medicaid Fraud Scheme After CEO's Death

New Jersey Recovers Millions in Landmark Judgment Against Fraudulent Mental Health Clinics

In a substantial victory for New Jersey's Medicaid program, Attorney General Matthew J. Platkin and the Office of the Insurance Fraud Prosecutor (OIFP) announced the seizure of approximately $6.4 million under a final judgment by consent. This case, which unfolded against a now-deceased defendant, Daniel E. Cassell, highlighted an elaborate scheme involving a chain of mental health clinics across five counties—Essex, Hunterdon, Mercer, Union, and Warren—that defrauded Medicaid through a sophisticated bogus billing operation.

Cassell, who served as the president and CEO of Kwenyan Professional Health Services, along with Kwenyan and Associates, faced a 17-count indictment in August 2022 for his role in submitting thousands of false claims for reimbursement to Medicaid. Despite Cassell's death in December 2022, the judgment resolves allegations of fraudulent claims made for services that were never provided to Medicaid beneficiaries. In court, the Kwenyan entities admitted to this fraudulent behavior, marking a significant acknowledgment of guilt.

The judgment includes the forfeiture of 15 passenger vans, over $2.4 million from financial accounts, nearly $4 million from the sale of properties, and additional rental income, totaling a seizure of around $6.4 million. This outcome is a testament to the diligent efforts of the OIFP, demonstrating a firm commitment to prosecuting fraud and recovering stolen public funds.

Attorney General Platkin emphasized the seriousness of the fraud, stating that the systematic submission of false claims over years defrauded taxpayers of millions. The significant recovery sends a clear message to providers about the consequences of billing Medicaid for undelivered services. Interim Insurance Fraud Prosecutor Al Garcia credited the successful asset recovery to the hard work of detectives and attorneys, reaffirming the state's dedication to safeguarding Medicaid programs from fraud.

This case's success was supported by cooperation among various agencies, including the New Jersey Department of Treasury, the Division of Taxation, and law enforcement departments across multiple states, showcasing the collaborative effort required to tackle complex fraud schemes. The OIFP's Medicaid Fraud Control Unit continues to protect Medicaid beneficiaries and the program from fraud, waste, and abuse, ensuring the integrity of healthcare services and the judicious use of public funds.