Major Medicaid Fraud Case Ends with $6.4 Million Seizure in New Jersey

In a decisive move against Medicaid fraud, New Jersey’s Attorney General Matthew J. Platkin, along with the Office of the Insurance Fraud Prosecutor (OIFP), has announced a significant seizure of assets totaling approximately $6.4 million. This comes as part of a final judgment by consent against Daniel E. Cassell, the deceased head of a chain of mental health clinics located in Essex, Hunterdon, Mercer, Union, and Warren counties. Cassell was charged with operating a fraudulent billing scheme that targeted Medicaid, following a detailed investigation by the Medicaid Fraud Division of the Office of the State Comptroller.

The investigation uncovered over 10,000 false claims submitted to Medicaid by Cassell’s businesses, Kwenyan Professional Health Services, and Kwenyan and Associates, from January 2015 to October 2020. These claims were for services that were never rendered or for group therapy sessions falsely billed as individual or family psychotherapy sessions, which are reimbursed at a higher rate.

Despite Cassell’s passing in December 2022, the entities under his control admitted to the fraudulent activities, leading to the forfeiture of significant assets. These assets include 15 passenger vans, more than $2.4 million from financial accounts, and nearly $4 million from property sales, in addition to funds collected from renting out real estate parcels.

This legal action emphasizes New Jersey’s commitment to combating healthcare fraud, with Attorney General Platkin highlighting the judgment as a strong deterrent against such exploitative practices. Interim Insurance Fraud Prosecutor Al Garcia commended the rigorous efforts of detectives and attorneys involved in the case, stressing the importance of safeguarding Medicaid programs from fraudulent schemes.