Ruby Scott of Farmington Hills, Michigan, is the 55-year-old owner of Delta Home Health Care LLC, who has been convicted by a federal jury of healthcare fraud and illegal healthcare kickback offenses connected to a scheme that caused more than $1.6 million in losses to the Medicare program.
Federal prosecutors alleged that Scott operated the scheme between 2018 and 2021. The allegations stated that Medicare was fraudulently billed for home health services using stolen patient records.
According to the case, Scott established a relationship with a discharge nurse at a Detroit hospital. The nurse identified Medicare patients and faxed their medical records to Delta Home Health Care. Scott paid approximately $300 for each set of patient records that was successfully used to bill Medicare. The discharge nurse received more than $130,000 through check payments, cash PayPal, and CashApp in exchange for providing patient records.
Prosecutors alleged that Scott used confidential diagnostic and personal information from the records to bill Medicare for home healthcare services. The claims represented that a physician had certified that the patients met Medicare requirements for home health care services.
The patients whose information was used were unaware that their personal and health information was being submitted in claims to Medicare. Prosecutors also alleged that the doctors identified in the claims had never met the patients and did not know that their information was being used in connection with the billing submissions.
Medicare paid approximately $1.2 million to Delta Home Health Care. The scheme was alleged to have caused approximately $1.6 million in losses to the Medicare program.
Scott was not charged with HIPAA violations, but was charged with multiple fraud and kickback-related offenses. A federal jury in the Eastern District of Michigan returned guilty verdicts on four counts of paying illegal health care kickbacks, and five counts of health care fraud, conspiracy to defraud the United States and pay illegal health care kickbacks.
The conspiracy count carries a maximum sentence of five years in prison. The healthcare fraud counts and kickback counts each carry a maximum sentence of 10 years in prison. Scott is scheduled to be sentenced on September 24, 2026.
A Department of Justice press release announcing the verdict stated that the Fraud Division is focused on investigating and prosecuting individuals who commit fraud against the American public. The press release also stated that the Department’s anti-fraud efforts support President Trump’s Task Force to Eliminate Fraud, which is chaired by Vice President J.D. Vance and is intended to address fraud, waste, and abuse within federal benefit programs.