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Florida Treatment Center Operators Sentenced in $112 Million Fraud Case
A pair of brothers who were convicted in November on charges related to a $112 million fraud scheme while operating 2 addiction treatment facilities in South Florida have been sentenced, the US Department of Justice announced this week.
Jonathan Markovich, 37, and his brother, Daniel Markovich, 33, were sentenced to 188 months and 97 months in prison, respectively.
The Markovich brothers were found guilty of conspiring to unlawfully bill for $112 million of addiction treatment services that were medically unnecessary and/or never provided. Services were procured through illegal kickbacks at 2 facilities—Second Chance Detox, an inpatient and residential facility which does business as Compass Detox, and WAR Network, a related outpatient program. The brothers also paid kickbacks to patients through recruiters and received kickbacks from testing labs, according to evidence presented at trial.
In November, both defendants were convicted of multiple counts of conspiracy to commit healthcare fraud and wire fraud, as well as conspiracy to pay and receive kickbacks and paying and receiving kickbacks. Separately, Jonathan Markovich was found guilty of conspiring to commit money laundering, concealment of money laundering, laundering at least $10,000 in proceeds of unlawful activities, as well as bank fraud related to fraudulently obtaining Paycheck Protection Program loans for both facilities.
“These substance abuse treatment facility operators, through brazen tactics driven by greed, took advantage of vulnerable patients seeking treatment,” Assistant Attorney General Kenneth A. Polite Jr., US Justice Department Criminal Division, said in a news release. “These sentences demonstrate the department’s unwavering commitment to protecting patients and prosecuting fraudulent substance abuse treatment facilities through our Sober Homes Initiative.”
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