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Cranberry woman admits role in $87 million in Medicaid fraud

A Cranberry Township woman and her two Pittsburgh relatives pleaded guilty in federal court to defrauding the Pennsylvania Medicaid program for nearly eight years, resulting in the collection of $87 million in illegal Medicaid payments.

According to a news release from U. S. Attorney Cindy Chung, Arlinda Moriarty, 53, pleaded guilty on Friday to one count each of conspiracy to commit health care fraud, health care fraud, engaging in a scheme to conceal material facts in a health care matter and aggravated identity theft.

Moriarty’s sister, Daynelle Dickens, 47, of Pittsburgh, and their uncle, Tony Brown, 64, of Pittsburgh, also pleaded guilty to one count each of conspiracy to commit health care fraud and health care fraud.

The fraud occurred from January 2011 to April 2017, during which four entities controlled by Moriarty collected $87 million in payments based on fraudulent claims.

The entities, Moriarty Consultants, Activity Daily Living Services, Everyday People Staffing and Coordination Care, were approved by Medicaid for their service to consumers, which included personal assistance, service coordination and additional services.

During proceedings, Moriarty admitted to fabricating state documents to conceal the scheme.

According to the news release, 16 defendants were charged in connection to the conspiracy with Moriarty. Co-conspirators fabricated time sheets to reflect services never performed and excess hours that should not have been billed, as well as criminal background checks, child-abuse clearances and other documents during the eight-year period.

Moriarty, Dickens and Brown agreed to pay $8.7 million, $1 million and more than $43,000 respectively, in restitution.

The three defendants will appear before U.S. District Judge Cathy Bissoon on Sept. 28 for sentencing.

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