- The Washington Times - Sunday, October 8, 2006

The chief executive of a District-based mental health organization has been indicted on money-laundering charges months after federal prosecutors said he bilked the city’s Medicaid program.

The new charges add to the legal problems faced by Ricardo F. Henry, founder of Insight Therapeutic Services Inc. He pleaded not guilty to health care fraud charges after his indictment in March.

Federal authorities said a government auditor has estimated that up to 80 percent of the Medicaid claims submitted by Mr. Henry from 1999 to 2002 were false. In addition, they said, Mr. Henry lied about having a doctorate degree.

Mr. Henry received about $500,000 from the city’s Medicaid program in 2001 and 2002, prosecutors said. In the charges filed Friday, authorities said Mr. Henry committed bankruptcy fraud and money laundering.

The new charges stem in part from more than $100,000 spent by Mr. Henry for a 2001 Porsche 911 Carrera. The money, prosecutors said, was obtained through health care fraud. Authorities also say he registered the car in another person’s name in New York to hide the purchase from creditors.

Mr. Henry filed for bankruptcy last year, but the case was reopened earlier this year after federal authorities raided his D.C. apartment and seized the car and other assets.

Among the other assets Mr. Henry tried to conceal from creditors were $120,000 from the sale of a home in Silver Spring and at least six firearms, including a Winchester rifle set, according to the indictment.

A status report in the criminal case issued last week states that Mr. Henry faces two trials, one for bankruptcy fraud and another for health care fraud. Mr. Henry’s attorney likely will seek separate trials, while prosecutors are expected to oppose the move.

Mr. Henry’s attorneys have disputed the charges, according to the status report.

“It is the defense’s position that rather than cleanly charging provable offenses, the government has thrown everything but the kitchen sink into the 62-count original indictment hoping something will stick with the jury under the ‘where there’s smoke there’s fire’ theory,” the report states.

But prosecutors counter in the seven-page report that they have “carefully selected the indicted counts from literally thousands of possible charges.”


Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.

 

Click to Read More and View Comments

Click to Hide