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COOK COUNTY - A husband-and-wife team, along with a Chicago social worker, have been indicted for allegedly scheming to defraud Medicare of over $1.16 million.
Calumet City residents Richard W. Pitts, 67, and Tammie J. Pitts, 53, owners of the not-for-profit corporation American Warriors, Inc., allegedly worked with social worker Charlo G. Jordan, 43, from 2019 to 2021 to submit false claims for psychotherapy services that were not provided as claimed.
According to the indictment, the fraudulent claims stated that residents of senior living facilities in the Chicago area received one-hour, individual psychotherapy sessions – even though the services were never provided.
The indictment states Richard Pitts invited residents of the senior facilities to breakfast meetings, which sometimes included guest speakers or group activities, where the residents' information would be collected and used in support of the fraudulent claims.
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After the Covid-19 pandemic began and American Warriors could no longer hold in-person breakfasts, the company allegedly collected residents' phone numbers and continued to bill Medicare for services that were never provided.
In total, American Warriors received $1,164,624.61 in fraudulent claims, according to the indictment.
The trio has pleaded not guilty to the charges. They each could face up to 10 years in federal prison.