A Danbury man was arrested today and charged with submitting thousands of fraudulent claims totaling more than $1.3 million dollars to Medicaid for services that were either not rendered or rendered by unlicensed personnel.
Bobby R. Kato, Jr., age 43, of Hayestown Road in Danbury, was arrested today by Inspectors from the Medicaid Fraud Control Unit in the Office of the Chief State's Attorney and charged with one count each of Larceny in the First Degree By Defrauding A Public Community, Health Insurance Fraud, two counts of Identity Theft in the Second Degree and one count of Identity Theft in the Third Degree.
According to the arrest warrant affidavit, Kato was the sole owner and principal of Kato Counseling, LLC, a Connecticut Medical Assistance Program (CMAP) provider enrolled as a Behavioral Health Clinician Group. CMAP includes Medicaid and is part of the Department of Social Services (DSS). Under DSS regulations for behavioral health clinicians, services provided by anyone other than the provider will not be reimbursed. The investigation found that Bobby Kato, billing as Kato Counseling, LLC, was paid for a total of 14,104 claims in the amount of $1,324,879.16 for psychotherapy services that were never rendered. In addition, Kato Counseling was paid for an additional 316 claims for psychotherapy services rendered by unlicensed individuals in the amount of $29,433.66. The total fraud alleged is $1,354,312.82.
Kato was released on a $150,000 non-surety bond and is scheduled to appear in Hartford Superior Court, G.A. 14, on July 15, 2021. The charges are merely accusations and he is presumed innocent until and unless proven guilty.
Larceny in the First Degree by Defrauding a Public Community is a class B felony punishable by up to 20 years in prison. Health Insurance Fraud is an unclassified felony punishable by up to 5 years in prison. Identity Theft in the Second Degree is a C felony punishable by up to 10 years in prison. Identity Theft in the Third Degree is a D felony punishable by up to 5 years in prison.
The case will prosecuted by the Medicaid Fraud Control Unit. The Unit is grateful for the assistance it received in this investigation from the state’s Department of Social Services’ Office of Quality Assurance, the Connecticut Attorney General’s Office, the Federal Department of Health and Human Services’ Office of the Inspector General – Office of Investigations, and the New Britain Police Department.
Anyone with knowledge of suspected fraud or abuse in the public healthcare system is asked to contact the Medicaid Fraud Control Unit at the Office of the Chief State’s Attorney in Rocky Hill at 860-258-5986.