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Press Release

1.2 Million Dollars in Restitution Ordered in Medicaid Case against Good Faith Services

December 1, 2014

The State of Alaska, Department of Law, Medicaid Fraud Control Unit (MFCU) announced today that Good Faith Services, LLC (Good Faith) entered a plea of guilty to a single count of Medical Assistance Fraud on Friday, November 28, 2014.

Good Faith was a personal care agency that provided Medicaid personal care, transportation and care coordination services to eligible Medicaid recipients. In July 2013, the MFCU announced the filing of criminal charges against twenty-five Anchorage based personal care attendants (PCA) and Medicaid recipients as part of an ongoing state and federal investigation into Medicaid fraud by the employees, PCAs and recipients associated with Good Faith. Since July 2013, the state filed criminal charges for medical assistance fraud on 53 individuals associated with Good Faith, including thirteen of the sixteen office staff. The MFCU investigation revealed that ten full time office employees billed Medicaid $394,257 for services they claimed to be providing while simultaneously working in the office. The information filed further alleges that Good Faith billed Medicaid a total of $1,033,673.83 for Medicaid services provided by PCAs prior to the PCA receiving a valid background check in violation of Alaska Administrative Regulations.

The plea agreement calls for Good Faith to be sentenced to a single count of medical assistance fraud, a class B felony offense, and to pay a fine of $300,000 and restitution in the amount of $1.2 million dollars. The corporation must be permanently dissolved and provide a declaration to the federal Department of Health and Human Services, Office of Inspector General, that the corporation will no longer be providing Medicaid services.

Agnes Francisco, 55, of Anchorage, Alaska and one of the owners of Good Faith also entered a plea of guilty to a single count of attempted medical assistance fraud, a class C felony. The plea agreement provides that the court will determine Francisco’s sentence, but the court must find the aggravator that Francisco’s conduct was designed to obtain a substantial pecuniary gain with a low risk of prosecution and punishment. This aggravator will allow the court to impose a period of incarceration up to five years, which is above the presumptive range of 0-2 years. The court may also impose a fine of up to $50,000. Francisco’s sentencing is scheduled for March 31, 2015.

Anchorage Adult Day Services also entered a plea of guilty at the same time to a single count of medical assistance fraud, a class B misdemeanor. The entity was charged with medical assistance fraud for allowing Francisco’s son, Philip Francisco, to work for the business without a valid background check. The entity will pay a fine of $20,000 and will be permanently suspended from providing Medicaid services.

The case against Good Faith was initiated by a citizen complaint and jointly investigated by the Alaska Department of Law, Medicaid Fraud Control Unit, the Department of Health and Social Services, the federal Department of Health and Human Services, Office of Inspector General, the FBI and Immigration and Customs Enforcement.

The Alaska MFCU is part of the Attorney General’s Office. The MFCU is responsible for investigating and prosecuting Medicaid fraud and abuse, neglect or financial exploitations of patients in any facility that accepts Medicaid funds. The information filed by the Department of Law can be found on the MFCU website.

CONTACT: Assistant Attorney General Andrew Peterson at 907-269-6292. For more information about these cases or other cases handled by the Alaska MFCU, go to the MFCU website.

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