Seventh Defendant Convicted in Multi-Million-Dollar Health Care Fraud Scheme

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HOUSTON—Tony Nnonso Obi, 56, anaturalized U.S. citizen from the Federal Republic of Nigeria, has entered aplea of guilty for his role in a massive health care fraud conspiracy thatbilled the Medicare and Medicaid programs for more than $45 million, UnitedStates Attorney Kenneth Magidson announced today.
Obi was convicted of one count ofconspiracy to commit health care fraud and one count of money laundering.
As part of his plea, Obi admitted toentering into an agreement with the owner of City Nursing, Umawa Imo, toreceive 15 percent of the money City Nursing obtained from Medicare forservices billed on individuals referred to City Nursing by Obi or on Obi’sbehalf. Imo, who is currently serving more than 27 years in federal prison forhis role in the conspiracy, paid Obi $1,051,425.28. At least three of thebeneficiaries taken to City Nursing by Obi were individuals living in Obi’sassisted living facility. Obi also admitted to paying beneficiaries andrecruiters and handling office matters when Imo was out of the office.
Obi faces up to 10 years in prison and a$250,000 fine for each count. U.S. District Judge Kennth Hoyt, who accepted theplea today, has set sentencing for November 5, 2012. He has been in custodysince his April 3, 2012 arrest, where he will remain pending that sentencinghearing.
Six others have also been convicted inrelation to this scheme. The investigation into City Nursing was the result ofa joint investigation by agents of the FBI, Internal Revenue Service-CriminalInvestigation, the Department of Health and Human Services-Office of InspectorGeneral, and the Texas Attorney General’s Office-Medicare Fraud Control Unit.Assistant United States Attorney Julie Redlinger is prosecuting the case.