State prosecutors announced Wednesday that five people have been charged with nearly two dozen counts of Medicaid fraud totaling about $365,000 in losses.
Victor Aldeza, Regino Aldeza, Albert Aldeza, George Aldeza and Lovelyemy Libao stand accused of medical assistance fraud conspiracy lasting from January 2009 to March 2017, according to the Department of Law.
The group stole $364,756 by pretending Regino Aldeza suffered from serious disabilities, prosecutors said, and the Department of Health and Social Services had approved his siblings to provide around-the-clock care paid for through the federal program.
But their alleged scheme came to light March 18 when an employee of Arctic Care Services, a personal care agency that works with DHSS, was eating in the food court of the Dimond Center, according to charges filed against the defendants.
The employee recognized Regino Aldeza — who was working at a fast-food restaurant in the mall — and knew Aldeza was supposed to be "significantly disabled," the charges say.
The employee reported the sighting to her supervisors, and they informed the state health department. DHSS reported to investigators, according to the charges, that Regino Aldeza was assessed as needing help "in all aspects of life, including eating, locomotion, toileting, meal preparation, basic household chores, basic walking and range of motion exercises, and personal hygiene." The assessment reportedly happened around 2006.
A few days after the first sighting of Regino Aldeza at work, others saw him working and moving around without needing help, according to an affidavit written by Assistant Attorney General Eric Senta.
"R. Aldeza was moving freely, lifting heavy objects, working vigorously, conversing normally, using the cash register and making change, preparing meals quickly in a fast-food environment, and was observed to be in fine health with no observable difficulties doing anything," Senta wrote.
Soon after, investigators with the state's Medicaid Fraud Control Unit starting working with Alaska State Troopers, Anchorage police, mall security and other state agencies to uncover the alleged fraud.
In addition to establishing that Regino Aldeza is not disabled, investigators found the defendants left the country and billed Medicaid for services, among other accusations, according to the charges.
The top charges of medical assistance fraud and scheme to defraud carry a possible sentence of up to 10 years in prison, a fine of up to $100,000 and restitution to the state's Medicaid program.