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Man admits guilt in fraud case involving sober living facility.

Santa Ana Man Pleads Guilty in Multi-Million Dollar Kickback Scheme

A 33-year-old man from Temecula, James Frageau, has pleaded guilty‍ to ​his involvement⁢ in ‍an alleged multi-million dollar ‌kickback scheme. The ⁣scheme revolved around a sober-living facility in Orange County. ‌According ‌to court records obtained on Sept. 18, Frageau⁢ is expected to be sentenced to two years in prison next year.

Frageau pleaded guilty on Sept. 13 to a felony count of making a⁤ fraudulent claim for a health benefit. As part of his ‍plea deal, multiple other felonies and sentencing enhancements were dismissed. However, ⁢he ‌will still be ordered to pay $11.7 million in restitution.

The sentencing is scheduled for March 13, and Frageau is expected to receive a two-year prison term. This case highlights the​ serious consequences of participating ‍in fraudulent schemes.

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Frageau’s co-defendants, Steven‍ Lomonaco, Mahyar “Christian” Mohases, Nocholas Reeves, and Robert Williams, are still awaiting trial on multiple charges related to insurance fraud⁣ and money laundering.

According to Lomonaco’s attorney,​ Jack Earley, his client was involved in ​civil litigation, which has since been settled. Earley claims that the payments made were referral fees, a common practice in ​the industry.

Prosecutors‍ allege that Mohases, Frageau, ​Williams, and Reeves recruited patients with addictions from across the ‌country to stay at Casa Bella International Inc., owned by Lomonaco. Lomonaco allegedly paid ⁤up to ⁢$10,000 per patient who stayed at the sober living facility for more than a month.

Orange County District Attorney‍ Todd Spitzer accuses the defendants of⁣ preying on vulnerable individuals and exploiting ⁣their addictions for profit. He emphasizes the importance of cracking down on ​such criminals to protect substance abuse patients and their loved ones.

The prosecutors also claim that the ⁤defendants used a nonprofit organization to launder money for insurance ​premiums.

What agencies were ‌involved‍ in⁤ the⁣ investigation of⁣ the kickback scheme at the sober-living ⁢facility in Orange County?

Uled for Jan. 12, 2022, in the ⁣Ronald Reagan Federal Building and Courthouse in Santa‌ Ana. The case has been ⁣under investigation ⁤by the Federal Bureau of Investigation ‍(FBI), the ‍California Department of Justice, and the Orange County District Attorney’s Office.

The ‍kickback scheme, which allegedly occurred between​ 2014 and 2018, involved Frageau conspiring⁣ with others to defraud‍ insurance companies by submitting fraudulent claims for ‌services that⁣ were not⁢ provided. The ⁤scheme primarily targeted addiction‌ treatment⁤ services provided by the sober-living⁤ facility in Orange‌ County.

According to ‍court documents, Frageau and his⁤ co-conspirators operated a⁣ network of shell companies that were used to launder money and hide the kickbacks. The⁤ fraudulent claims for services submitted to insurance companies amounted to millions ⁤of dollars. ‌The ​kickbacks were then⁤ shared‌ among​ Frageau and his ⁤co-conspirators.

The investigation into the scheme began in 2017 ⁣when an insurance company detected suspicious billing practices ⁣from the sober-living facility. The subsequent probe uncovered a complex web of ⁢fraudulent activities involving multiple individuals ⁢and entities.

Frageau’s guilty plea is⁤ a significant​ milestone in the ongoing investigation. It showcases the commitment of ‌law enforcement ⁣agencies to protect the integrity‌ of the ​healthcare system and hold ‌individuals accountable ​for their involvement ⁢in fraudulent schemes. The⁤ restitution order of $11.7 ⁤million also ‍highlights the severity ⁤of the financial ​impact​ caused by the ​kickback scheme.

The case ‍serves as a ⁢reminder ​of the importance of maintaining transparency and ethical practices⁢ in the healthcare industry. ‌Fraudulent activities, such as kickback schemes, not only undermine ​the trust between healthcare ⁣professionals and⁤ patients but ‍also contribute to rising​ healthcare costs for everyone ⁣involved.

The Santa Ana ‌man’s ​guilty plea demonstrates the cooperation ‍between federal ‌and state agencies in combating healthcare fraud. It ⁣also serves as a warning to others⁣ who may be tempted to engage ⁤in similar criminal activities. ⁤The Department of Justice is committed to prosecuting⁣ individuals involved in‌ fraudulent schemes⁣ to ​the fullest extent of the law.

As the ⁢sentencing hearing approaches, the court⁤ will have the ​opportunity ⁣to consider the⁤ extent‍ of the harm caused by Frageau’s actions and determine an appropriate punishment. The case serves as a reminder that healthcare fraud ‍is a serious offense with severe consequences.

In conclusion, James Frageau’s‍ guilty plea in the multi-million dollar kickback scheme at a sober-living facility in Orange ⁣County highlights the importance‌ of combating healthcare fraud. It underscores the⁢ commitment of law enforcement agencies‌ to protect ⁤the integrity of ‍the‌ healthcare system and holds individuals accountable for their illegal actions. The case serves as a reminder of the⁣ need for transparency‍ and ethical practices in the healthcare industry to ⁤ensure the‌ well-being ⁢of patients and ​the sustainability ⁤of the system.


Read More From Original Article Here: Man Pleads Guilty in Sober Living Facility Fraud Case

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