Couple Used East Bay Health Agency To Steal Millions From Medicare: DOJ

HAYWARD, CA — The CEO of a home health agency in Hayward was found guilty earlier this month of trying to defraud Medicare with the help of his wife.

A jury found Simon Katz, 43, guilty of conspiracy to commit health care fraud in connection with a scheme to submit fraudulent claims to Medicare and falsify medical records following a six-day trial. He faces 20 years in prison along with a $250,000 fine.

The conviction comes more than two years after Katz's wife, Veronica Katz, pleaded guilty in the same case to health care fraud. She was sentenced to two years in prison and ordered to pay restitution of $543,634.34 to Medicare, along with a $50,000 fine.

"Successfully uncovering and prosecuting complex health care fraud schemes like this one requires years of determined investigative work and close coordination among federal and state partners," said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) San Francisco Regional Office. "This verdict reflects the steadfast efforts of HHS OIG and our law enforcement partners."

Federal prosecutors say Katz was the CEO of CEO of HealthNow Home Healthcare when he conspired with his wife to commit health care fraud to deceive California Department of Public Health inspectors.

Starting around Oct. 1, 2018, the couple began submitting fraudulent medical records that had either been altered or contained forged doctor signatures, according to the Department of Justice.

They also had "unqualified medical professionals" provide care for patients "outside their authorized scope of practice," federal prosecutors said.

By November 2020, HealthNow received more than $3 million in payments, federal prosecutors said, adding that Katz took home $300,000 from the company during the same time period.

When one of HealthNow’s former employees told the couple in 2019 that the FBI had questioned them regarding the company's billing practices and medical assessment, Katz told them to lie, federal prosecutors said.

Katz, who currently resides in Boca Raton, Florida, is currently in federal custody. A sentencing date has not been set.

Co-conspirators Vennesa Herrera and Pharadja Andrews pleaded guilty in 2021 to conspiracy to commit health care fraud, federal prosecutors said. Herrera was also found guilty of health care fraud, they added.

They are both scheduled for a status hearing on Aug. 3, 2026, authorities said.

"Katz and his co-conspirators orchestrated a deliberate scheme that put vulnerable patients at risk and stole from Medicare," said Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office. "We will continue working with our partners to ensure those who defraud our health care system are held accountable."