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Dunn couple ordered to pay $3M in fraud case

Posted April 11, 2013

— A Dunn couple who ran a home health care business were ordered Wednesday to pay back $3 million after pleading guilty to charges that they submitted fraudulent Medicaid claims and pocketed their employees’ taxes.

A federal judge sentenced John Alspaugh to 40 months in prison followed by three years of supervised release, and he was ordered to pay $1.6 million in restitution, the U.S. Attorney’s Office said Thursday. His wife, Helen Blue Alspaugh, was sentenced to 18 months and three years of supervised release, along with restitution of nearly $1.4 million.

The Alspaughs pleaded guilty in January to one count of tax fraud conspiracy. John Alspaugh also pleaded guilty to one count of health care fraud.

The couple ran Basic Home Health Care Inc., which provided personal care services to the homebound. Prosecutors said the Alspaughs collected employment taxes but failed to pay the money to the Internal Revenue Service from 2003 to 2010.

John Alspaugh also submitted Medicaid claims worth more than $200,000 for clients who were deceased, incarcerated or not receiving services from 2006 to 2011.

“These crimes committed in this case defraud the IRS and taxpayers of valuable resources and shake the confidence in the system designed to provide medical care for people already in distress and in financial difficulties,” U.S. Attorney Thomas G. Walker said in a statement.


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  • Rebelyell55 Apr 12, 2013

    Sentence should of been more for what they did. As lease the prison time should of been more.

  • happymom Apr 12, 2013

    "Do away with Medicare/aid. With the money saved, people might be able to afford to stay home and care for their sick loved ones or hire private nurses."

    How exactly does a person "save" personal income money when she is not working while caring for a sick relative? Last I checked, 0% of 0 is... 0. You can't live on a $0 income. Folks scream about having people on public assistance, but then these same people are just as angry about providing support services that enable folks to go to work.

    And poor people rely on these services. Even if they were somehow, miraculously able to work while providing their own home care, they could certainly not afford a private nurse without it costing their entire paycheck.

  • ripetomatoes Apr 12, 2013

    This dude bought a fridge with a tv in it the day they were made available. He never left the house, unless told.

    Neither person ever worked an honest day in their life.

    Cheating people out of money is a full time job.

  • Terkel Apr 12, 2013

    No photos of the perps?

  • Terkel Apr 12, 2013

    whatelse has correctly identified the solution. Do away with Medicare/aid. With the money saved, people might be able to afford to stay home and care for their sick loved ones or hire private nurses.

  • Rolling Along Apr 12, 2013

    How the high and mighty have fallen...

    I seriously doubt that "our" money will ever be fully repaid.

  • lisaclark2 Apr 12, 2013

    People that take advantage of elderly/disabled either directly or indirectly should not see light of day again. (The government does it everyday)

  • lisaclark2 Apr 12, 2013

    I do really wish we would do away with the words rep/dems. Everyone uses it to much for an excuse for an answer as to why something happen or didn't happen.

  • whatelseisnew Apr 12, 2013

    "Nothing from the Republicans, or The News Media"

    Unfortunately, many of the lifer Republicans are not very different from the lifer Democrats. As with any organization, new blood that want to change things are corralled as quickly as possible and told to toe the line. In the meantime, those working, are just being abused by the Government and the so-called poor.

  • whatelseisnew Apr 12, 2013

    Really, seven years this guy did not pay the IRS? Fraud is so rampant because it is just to easy to scam the huge Federal System. The IRS probably more than any other agency tries to uncover tax cheats yet these people did not pay up for seven years apparently going undetected for some number of years. Fraud with Medicaid is rampant and will continue. The only real solution is to get rid of Medicaid and Medicare for that matter. These are insurance programs that provide lousy coverage and are enormously expensive. I wish I could run an insurance scam where I collected a percentage of people's incomes and did not have to provide anything in return unless they made it to age 65 and then filed a claim. The best part at 65 I would get to charge them a whole new set of premiums, again partially income based. That is a much bigger scam then these folks ran.