US. Rindge man indicted in Massachusetts for money laundering
A Rindge man has been indicted in Massachusetts after allegedly laundering millions of dollars generated by fraudulently billing the state's Medicaid program through his former business.
Michael Davini, 57, was indicted by a Worcester County grand jury on Wednesday on three counts of money laundering, according to a press release issued by the Massachusetts Attorney General's Office. Davini is accused of attempting to hide $3 million in cash and two homes under his wife's name.
"We allege this individual made clear attempts to disguise millions of dollars in illicit funds obtained through a massive Medicaid false billing scheme," said Massachusetts Attorney General Maura Healey, in the release. "We will continue to take steps to protect the integrity and success of our MassHealth program and not allow taxpayers and patients to be taken advantage of for personal profit."
Davini is the former owner of Rite Way LLC, a Westminster, Massachusetts-based company that used to primarily provide non-emergency transportation services to methadone clinics. The company had offices throughout the state, according to the release.
The company was incorporated in May of 2010, according to a Better Business Bureau profile, and ceased operations in 2015.
Rite Way, along with Davini and three former managers, were indicted by a statewide grand jury in September 2016 in connection with fraudulent bills sent to MassHealth for services that were never provided.
Rite Way is also accused of submitting fraudulent claims for non-emergency wheelchair van transportation when most of the members did not require the service and were not transported in wheelchair vans, and offering and paying cash to MassHealth members to recruit others to use their services.
Davini and Rite Way are each facing two counts of larceny over $250, four counts of Medicaid false claims, and one count of kickbacks. The three managers are also facing their own charges.
The press release said bills were submitted for services not provided, or for patients that were hospitalized or deceased during the billing dates.
The Attorney General's Medicaid Fraud Division further investigated the situation and found that Davini allegedly laundered millions of dollars and transferred multiple properties that had been illegally financed or obtained through the Medicaid scheme. Davini allegedly transferred more than $5.5 million from Rite Way's operating accounts at an investment brokerage firm.
When MassHealth notified Rite Way that it was suspending further payments in September 2015, Davini allegedly moved $3 million in cash and securities from two accounts held at the brokerage firm into a new account under his wife's name "in an apparent attempt to shield ill-gotten gains from recovery by the Commonwealth," said the release.
The Attorney General's Office has also alleged that Davini transferred the title of two homes he owned to his wife around the same time.
The original investigation began in 2013 after the matter was referred to the Attorney General's Office by MassHealth.
Davini is scheduled to be arraigned at the Worcester Superior Court on April 24.