Dunn couple ordered to pay $3M in fraud case
Posted April 11, 2013
Dunn, N.C. — 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.