CEO Of Bay Area Home Health Agency Convicted Of Health Care Fraud Conspiracy Targeting Medicare

SAN FRANCISCO - A federal jury yesterday convicted Simon Katz of conspiracy to commit health care fraud in connection with a scheme to submit fraudulent claims to Medicare and falsify medical records. The jury's verdict follows a six-day trial before U.S. District Judge James Donato.

According to evidence presented at the trial, Katz conspired with his wife, the former CEO of HealthNow Home Healthcare, a home health agency based in Hayward, California, and two former agency employees to commit health care fraud. According to court documents and evidence presented at trial, Katz, 43, currently of Boca Raton, Florida, and his wife, Veronica Katz, agreed to defraud Medicare by having unqualified medical professionals provide care for home health patients outside their authorized scope of practice, billing Medicare for services never provided, submitting false documents to California Department of Public Health (CDPH) inspectors to maintain the ability to bill Medicare, and instructing former employees to lie to the FBI and federal law enforcement to conceal their fraudulent activity.

As part of the conspiracy, from October 1, 2018, when HealthNow began submitting fraudulent documents to deceive CDPH inspectors, through November 2020, HealthNow received more than $3 million in payments based on HealthNow's claims. Simon Katz in turn received $300,000 from HealthNow during that same time period.

In addition, trial evidence showed Simon Katz took steps to thwart the law enforcement investigation into HealthNow. In October 2019, Simon and Veronica Katz met with one of HealthNow's former employees, who informed them that FBI agents had questioned her regarding HealthNow's billing practices and patient medical assessments. Simon Katz instructed the employee to lie to the FBI and falsely state that the employee had been trained and supervised by a registered nurse in the course of conducting patient assessments.

Simon Katz is the fourth defendant convicted in connection with this investigation. Co-defendant Veronica Katz pleaded guilty to health care fraud on April 18, 2024, and was sentenced on December 9, 2024, to two years in prison and ordered to pay restitution of $543,634.34 to Medicare and pay a $50,000 fine. Vennesa Herrera pleaded guilty on Aug. 30, 2021, to conspiracy to commit health care fraud and health care fraud. She is scheduled for a status hearing on August 3, 2026. Pharadja Andrews pleaded guilty on August 30, 2021 to conspiracy to commit health care fraud. She is scheduled for a status hearing on August 3, 2026.

"Simon Katz and his wife defrauded Medicare by altering medical records and forging doctor signatures, and in the process stole millions from the hardworking American taxpayer," said United States Attorney Craig H. Missakian. "As part of the Administration's War on Fraud, we will continue our unrelenting efforts to investigate and prosecute anyone who steals from the public and we hope this verdict sends a strong message that this conduct will not be tolerated."

"This verdict underscores the FBI's commitment to protecting the integrity of federal health care programs and the patients who rely on them," said Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office. "Katz and his co conspirators orchestrated a deliberate scheme that put vulnerable patients at risk and stole from Medicare. We will continue working with our partners to ensure those who defraud our health care system are held accountable."

"Successfully uncovering and prosecuting complex health care fraud schemes like this one requires years of determined investigative work and close coordination among federal and state partners," said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) San Francisco Regional Office. "This verdict reflects the steadfast efforts of HHS OIG and our law enforcement partners. HHS OIG will continue collaborating with our partners to protect Medicare and uphold the integrity of the programs and patients we are entrusted to serve."

Katz is currently in federal custody. His sentencing hearing has not been scheduled. Katz faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Chris Highsmith and Kevin Yeh are prosecuting the case with the assistance of Kevin Costello and Lynette Dixon. The prosecution is the result of an investigation by the FBI, HHS-OIG, and the California Department of Public Health.

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.