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Health-Care Fraud Leads to 7-Year Sentence for Clinic Owner Involving $15 Million

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Apr 23, 2024

The owner of a mental health clinic, Gwendolyn Gibbs, has been sentenced to 84 months in federal prison for her involvement in a $15 million Medicare fraud and kickback scheme. The Justice Department announced this decision on Monday.

According to the DOJ, between 2007 and 2016, Gibbs submitted fraudulent claims for partial hospitalization program services to Medicare. These services were either never provided to patients or were not medically necessary. Additionally, Gibbs paid kickbacks to group home owners and patient recruiters in exchange for referring Medicare beneficiaries to her clinic.

In addition to her prison sentence, Gibbs has been ordered to pay more than $8.6 million in restitution. This case highlights the serious consequences of healthcare fraud and the importance of holding individuals accountable for their actions. Gibbs’ illegal activities not only defrauded the government but also put patients’ well-being at risk.

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