In the second and final part of this series on how a Kenyan family stole Sh230 billion from American taxpayers by making fraudulent claims on a medical scheme for elderly poor US citizens, we explain how Faith Newton, a registered nurse, created a carried out parallel scams that mirrored an earlier one that was executed by her husband and who managed to steal three times the amount her husband stole before his arrest.
In North Andover, Massachusetts, in the United States, sprawls a 10,777-square-foot red-brick mansion that’s so well-known in the wealthiest country on earth that several real estate agents have dubbed it “the most popular home in America.”
With its nine bedrooms, six fireplaces, four-car garage, gourmet kitchen, helipad, and backyard overlooking Lake Cochichewick, 440 Great Pond Road, as the property is known, can be described as a mansion, chateau, or a château Described are over-the-top real estate suitable for celebrities or anyone with an endless supply of cash.
The colonial-style house is so popular that in 2013 the American cable TV company HBO decided to make it the central location for its comedy film delete historywith Hollywood star Larry David, arouses the interest of the news channels.
But with a price tag of $2 million and a location thousands of miles from Hollywood where it would have been easier to find a buyer, the home didn’t find anyone who could afford it for years.
Then suddenly, on March 10, 2016, the sellers announced that they had found a buyer.
It wasn’t a celebrity or a famous entrepreneur. It was a nurse from Kenya. Faith Newton Kimaru, 56, had come to the United States years earlier to care for the elderly and had finally found her American dream — or so it seemed.
First, she spent $150,000 on a brand new, white, Italian-made Maserati Granturismo with a 4.8-liter V8 engine that can accelerate from 0-100 km/h in just 4.7 seconds.
She then paid for the home in full by wire transfer of $2,012,177 from her Bank of America account to attorney Robert Wyman, who then forwarded the money to property manager Anthony Dinapoli.
Mr. Dinapoli bought the property in 2002 for $2 million and spent over a decade expanding and renovating it in hopes of making a fortune.
But, having failed to find a buyer, he was content to sell it at any price as long as it was not less than what he had paid for it.
Around the time the mansion was put on the market, Federal Bureau of Investigation (FBI) detectives were tracking Faith’s husband, Francis Nderitu Kimaru, who is also Kenyan and wanted for fraud.
Compassionate Homecare LLC, a company the couple founded in 2010, was suspected of fraudulently obtaining $34 million by making fictitious claims to a health insurance scheme for old, sick and poor Americans.
With his passport frozen and unable to travel to Kenya where he could at least have attempted to shake off American law enforcement agencies handling his case, Mr. Kimaru elected to enter into a plea deal with the US government.
But instead of hiding, his wife, who hadn’t been arrested for the fraud, created a parallel scheme using the same tricks she had learned over time. In total, the family is said to have stolen $134 million from 2010 to January last year.
Faith fraudulently made $100 million (Shh 12 billion) from a network of recruiters, mules and money launderers with the help of Arbor Homecare Services LLC, a company she founded in February 2013 and ran until her arrest last year .
Like Compassionate Homecare, her husband’s business, also based in Massachusetts and founded three years earlier, Arbor saw itself as a home care facility providing services to the elderly.
But unlike Compassionate Homecare, which listed both Faith and her husband as directors, Arbor Homecare had Benjamin Njoroge Muiruri as its sole owner on paper.
The company was registered in February 2013 under number 454320346 with its physical address listed as 3 Court House Lane, Unit 9.
In fact, no one knew Faith was in any way connected to Arbor Homecare until she was arrested along with her employee, Winnie Waruru.
“Faith Newton was a partner and operator of Arbor Homecare Services LLC. Waruru was a licensed practical nurse employed as a home nurse at Arbor. The two engaged in a conspiracy to use Arbor to defraud Medicare out of at least $100 million,” the US Department of Justice said after their arrest.
Arbor’s approach was in many ways similar to Compassionate Homecare’s. The idea was to make as much money as possible by falsifying reimbursement claims to the US Medicaid program with non-existent patients.
The program, which is state and federally funded, is administered indirectly through licensed medical providers.
Providers then enroll eligible members of the population who meet criteria set by different states, and then bill the government for the services they provide after being certified by a licensed physician.
Arbor received its certification to participate in the program in August 2013, just seven months after its inception. Faith and her accomplices immediately got to work.
First, they hired patient recruiters whose job it was to scout the neighborhood for potential “patients.”
These dummy patients, which in most cases comprised entire families, would be paid whether or not they needed healthcare services to keep their mouths shut.
The recruiters, in turn, would earn $600 for each fake patient they recruit into the program.
Millions of dollars poured in.
The money was then funneled through 40 different bank accounts to other Kenyans including Mercy Nyagah, Andrea Njoroge, Marcus Njoroge and Benjamin Muiruri before being used to purchase the luxurious property or saved in trust funds.
It is not known if Faith or her husband ever invested their stolen money in their native country of Kenya. The Nation was unable to determine where they originally came from in Kenya before migrating to the United States.
Aside from the nine-bedroom mansion at 440 Great Pond Road in North Andover, Massachusetts, Faith invested an additional $2.3 million in a five-bedroom home at 2 Woolsack Drive in Westford, where her accomplices Mercy, Andrea, Marcus and Benjamin could live.
She also spent $347,074 on a three-bedroom mansion at 12 Mountain View Drive in Dracut that she was listing for rent, and another $116,069 on a three-bedroom home in the same neighborhood that was also up for rent.
The US government has filed a lawsuit to forfeit all of those possessions and funds accumulated in Faith’s 40 bank accounts.
Her accomplices Mercy, Andrea, Marcus and Benjamin, although not sued for the theft orchestrated by Arbor Homecare, were assigned to the forfeiture case.