Seven of “Operation Forgery Factory” Plead Guilty

Back in March of 2010, nine people were arrested in connection with a $1 Million insurance fraud scam for home health care services that were never provided.

All defendants in the case were charged with 16 counts of forgery, 13 counts of insurance fraud, four counts of theft by deception, three counts of criminal attempt theft by deception, two counts of corrupt organizations and one count each of theft by failure to make required disposition of funds, dealing in proceeds of unlawful activity and criminal conspiracy.

According to The Pocono Record, seven of those people pled guilty to the charges on July 5^th in Monroe County Court.

The supposed ringleader, according to the state Attorney General’s Office, is Judi Grate, who pled guilty to one count of conspiracy to commit theft by deception, one count of insurance fraud and four counts of theft by deception.

Pecilla Flowers and Patricia Lesane also pled guilty to insurance fraud and conspiracy to commit theft by deception. Uhura Byrd and Barbara Rollins pled guilty to conspiracy to commit theft by deception.

Melissa Bucano and her brother, Christopher Bucano pled guilty to theft by deception and conspiracy to commit theft by deception. It remains to be seen whether or not their mother, Bianca Bucano will plead guilty or go to trial, while co-defendant Grace John plans to go to trial.

Like Grate’s charges, the offenses to which the others pleaded guilty are each punishable by up to seven years in prison and/or a $15,000 fine.

According to an article from the Times News, which was released right after the original arrests, the scam, which attorney general agents have termed, “Operation Forgery Factory,” went like this:

Grate and Bianca Bucano would submit forged documents to insurance companies that stated that they were provided with home health care, when little or none actually occurred.

To help then with this scam, they enlisted the help of seven others. Out of the seven, Bucano recruited her daughter, Melissa, and her son, Christopher, while Grate enlisted her niece, Pecilla Grate Flowers.

Charged along with them are Grace John, Uhura “Nicole” Byrd, Barbara Rollins, and Patricia Lesane.

Grate stated that she was diagnosed with fibromyalgia and rheumatoid arthritis, for which she bought insurance policies and “hired” people to provide home care for her. Each day from June 20, 2000, to January 20, 2010, Grate submitted invoices and receipts to either the Philadelphia American Life Insurance Company (PALIC), or the Genworth Life Insurance Company.

She received a total of $361,289 from Genworth and $368,000 from PALIC.

The grand jury stated that, other than Christopher Bucano, all of the other co-defendants assisted Grate by fraudulently completing and signing caregiver invoices and receipts.

Along with allegedly stealing money from insurance companies, Grate also purchased a time-share and three Cadillac’s, despite being unemployed.

The grand jury found that Grate assisted Bianca Bucano and Melissa Bucano in stealing more than $371,000 from AIG Centennial Insurance Company, Metropolitan Life Insurance Company and the Pennsylvania Commission on Crime and Delinquency Victim’s Compensation Program (PCCD).

In June of 2004, the grand jury found that Bianca Bucano had filed a fraudulent claim with MetLife for a long-term care policy that she purchased in January of that year. Bianca Bucano stated in her claim that she was recently diagnosed with fibromyalgia and was receiving home care services from, what else, a company called J. Grate Home Health Services.

The grand jury also found that Bucano had submitted fraudulent invoices to MetLife stating that her son Christopher had provided her with 10 hours of home care services a day from January 13^th through September 30^th of 2009.

In spite of those claims, the jury actually noted that on many days during that timeline Christopher Bucano was either incarcerated, hospitalized or attending court hearings.

Bianca Bucano received over $321,000 from MetLife.

After the fake in-home care dates, the grand jury also noticed that Bianca had filed yet another fraudulent claim with AIG after a hit-and-run accident occurred in November of 2000. The accident actually occurred when two driver’s side mirrors were forced to collide, which caused no injuries to be reported.

Bianca Bucano is charged with submitting $150,000 worth of fraudulent invoices to AIG stating that she received home care services on a daily basis from J. Grate Home Health Services between July 30, 2001 and January 4, 2004 for injuries that she allegedly suffered in the accident.

The case was settled by AIG for $15,000.

Adding another fraudulent claim onto the pile, the grand jury also stated that Bucano filed a claim with the Pennsylvania Commission on Crime and Delinquency (PCCD) Victim’s Compensation Program requesting compensation in connection with the November 2000 auto accident. PCCD reimburses crime victims for expenses they face as a result of a crime.

Attorney General Tom Corbett stated that Bianca Bucano submitted invoices to PCCD that indicated that she received home care services on a daily basis from J. Grate Home Health Services between May 1, 2002 and April 18, 2005.

The invoices totaled $165,970, and PCCD paid her the maximum amount that the agency permitted, $35,000.

“Insurance fraud is not a victimless crime. When people cheat the system, it leads to increased insurance premiums for everyone,” Corbett said. “Almost every Pennsylvanian is feeling the burden of rising insurance costs. We take these allegations very seriously.”

When sentenced, Grate will face up to 42 years in prison and/or a $90,000 fine.

So far, all nine defendants remain free on bail.