Scranton Reporter

Ester N. Mbaya, a 43-year-old resident of Harrisburg, Pennsylvania, has pleaded guilty to charges of health care fraud and bank fraud. The plea was entered before United States District Court Judge Julia K. Munley, as announced by the United States Attorney’s Office for the Middle District of Pennsylvania.

Gerard M. Karam, the United States Attorney, revealed that Mbaya was the president of Cool Waters, LLC, a home health care agency. She admitted to submitting fraudulent Medicaid claims from January 2018 to June 2020, seeking compensation for services not provided or inflating claims. This fraudulent activity resulted in her obtaining over $1 million.

In addition to the Medicaid fraud, Mbaya submitted falsified records to four financial institutions to secure loans and lines of credit. These falsifications included altered bank statements and paychecks.

Pennsylvania Attorney General Michelle Henry commented on the case: “The diligent work of law enforcement collaborators uncovered a criminal scheme that diverted money from in-need Pennsylvanians who could have benefitted from the Medicaid program.” She added that their office is committed to ensuring Medicaid funds are used appropriately.

Special Agent in Charge Maureen Dixon from the Department of Health and Human Services Office of Inspector General emphasized the importance of legal compliance by medical providers when billing Medicaid: “Alongside our law enforcement partners, HHS-OIG will continue to investigate inaccurate billings submitted to federally funded health care programs.”

The investigation was conducted by the U.S. Office of Inspector General for the U.S. Department of Health and Human Services and the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Christopher Sherwood and Assistant U.S. Attorney Michael Consiglio are leading the prosecution.

Federal law stipulates a maximum penalty for these offenses as 40 years imprisonment, supervised release following imprisonment, and a fine. Sentencing will be determined by Judge Munley after reviewing federal sentencing statutes and guidelines.