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Press Release

Good Faith Services Owner Sentenced to 3 years for Fraudulently Billing Medicaid

December 11, 2015

The Alaska Department of Law, Medicaid Fraud Control Unit, announced today that 56-year-old Agnes Francisco was sentenced to 3 years of active incarceration, plus 10 years of probation. Judge William Morse also ordered Ms. Francisco to pay a $50,000 fine. Ms. Francisco pled guilty to Attempted Medical Assistance Fraud in association with her company, Good Faith Services, LLC, during the years 2008-2013.

At the same hearing, Good Faith Services, LLC, and Anchorage Adult Day Services, LLC, two companies in which Ms. Francisco held an ownership interest, were also sentenced for Medical Assistance Fraud. Good Faith Services, LLC, was ordered to pay a fine of $300,000 and restitution in the amount of $1.2 million. Anchorage Adult Day Services was ordered to pay a $20,000 fine.

Ms. Francisco admitted that she committed Medical Assistance Fraud in multiple ways. For example, she knowingly authorized employees to submit false timesheets, valued at $529,000, for services not provided to Medicaid recipients. Additionally, Good Faith Services billed Medicaid $1.03 million for services provided by employees who were not legally authorized to bill Medicaid. In total, 50 individuals were convicted of criminal offenses associated with Good Faith and seven individuals agreed to civil sanctions for similar conduct.

Assistant Attorney General Andrew Peterson said that “the State will diligently monitor the Medicaid program, and will vigorously prosecute those who steal from Alaskans.” Judge Morse remarked that her crime was “extremely” serious, stunning in scope, rather than a case of honest mismanagement. The Judge stated that he intended to “send a message” that Medicaid fraud would not be tolerated. He described Ms. Francisco’s company as a “cesspool of fraud.”

The case was initiated by citizen complaint to the Alaska Department of Health and Social Services, and was jointly investigated by the Alaska Department of Law, Alaska Department of Health and Social Services, the U.S. Department of Health and Human Services, Office of Inspector General, Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations, and the Social Security Administration. Mr. Peterson emphasized that this case is a great example of how state and federal collaboration can work to combat fraud and abuse in the Medicaid system.

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 in the complaint can be found on the MFCU website.

CONTACT: Assistant Attorney General Andrew Peterson 907-269-6279 (Andrew.Peterson@Alaska.gov) for more information about this case or others handled by the Alaska MFCU.

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