DETROIT, Michigan - A federal jury has convicted a 55-year-old nurse and home health care agency owner in one of the latest major Medicare fraud cases in Michigan.
Ruby Scott of Farmington Hills was found guilty of running a sophisticated scheme that defrauded Medicare of more than $1.6 million by stealing confidential patient records and billing for services that were never provided.
How the Scheme Worked
Scott owned and operated Delta Home Health Care LLC. Instead of finding clients through legitimate marketing, she allegedly paid a hospital discharge nurse working inside a Detroit hospital to illegally send her private patient information.
- Between 2018 and 2021, Scott paid the inside nurse approximately $300 per patient successfully billed to Medicare.
- She allegedly transferred over $130,000 in bribes using CashApp, PayPal, checks, and cash.
- The discharge nurse secretly faxed protected patient records to Scott without the patients’ knowledge or consent.
Fake Doctor Signatures and Ghost Services
Once Scott had the stolen patient data, she submitted hundreds of fraudulent claims to Medicare. The claims falsely stated that:
- Doctors had personally evaluated the patients
- The patients were certified as “homebound”
- Legitimate home health services were provided
In reality:
- No doctors ever examined these patients
- Scott used the names and credentials of real physicians without their knowledge
- Many patients received zero care from her company
When federal investigators audited Delta Home Health Care, they discovered the agency had no patient files for more than one-third of the claims submitted. Despite the missing documentation, Medicare had already paid over $1.2 million on these unsupported claims.
Guilty Verdict
After a federal trial, the jury convicted Ruby Scott on:
- 5 counts of Health Care Fraud
- 1 count of Conspiracy to Defraud the United States
- 4 counts of Paying Illegal Kickbacks
Sentencing is scheduled for September 24, 2026. She faces up to 10 years in prison on each fraud and kickback count, plus additional time for the conspiracy charge.
The case was investigated by the FBI Detroit Field Office and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
Final Thoughts
This case highlights the serious risks of insider fraud in healthcare. By exploiting stolen patient data and falsifying medical records, such schemes not only steal taxpayer dollars but also violate patient privacy and undermine trust in the healthcare system.
Source: U.S. Department of Justice