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Victory in Court: Louis Busico Secures Acquittal in Medicare Fraud Case

Newtown Man Guilty, Wife Acquitted in Medicare Scam

By Laurie Mason Schroeder, Staff Writer


A verdict has been reached in the federal court trial of a Newtown couple accused of running a Medicare scam. On Tuesday, November 7, 2012, the jury found Ilya Sivchuk guilty but acquitted his wife, Alla Sivchuk, of all charges.


Ilya Sivchuk, 45, was found guilty of making false statements to investigators, while his wife, Alla Sivchuk, 45, was acquitted of all charges. The couple had been accused of submitting fraudulent claims to Medicare for transporting patients by ambulance who were able to walk or take public transit. Over six years, prosecutors said, Tracis, Inc. and Morago, two Newtown companies owned by the Sivchuks, received $2.7 million from Medicare for services the government claimed were not needed.


The prosecution, led by Assistant U.S. Attorney Bea Witzleben, argued that the couple’s companies filed fraudulent claims with Medicare by exaggerating the medical necessity of the services provided. Investigations began after a whistleblower from within the company reported the alleged fraud.


The couple’s defense attorney, Louis Busico, successfully argued that Alla Sivchuk had no knowledge of the fraud. He emphasized that she was not involved in the day-to-day operations of the business and had no role in the billing process.


During the trial, evidence presented showed that while Ilya Sivchuk was actively involved in the business operations, there was insufficient evidence to prove Alla Sivchuk’s involvement in any fraudulent activities. The jury deliberated for several hours before reaching their verdict, clearing Alla Sivchuk of any wrongdoing.


“I am relieved that the jury saw the truth and acquitted my client,” Busico said. “There was never any evidence that she was involved in any fraud.”


Despite the acquittal of Alla Sivchuk, Ilya Sivchuk faces significant legal challenges ahead. He is set to stand trial next month on separate fraud charges related to the same Medicare scam.


Busico expressed his intention to continue fighting for Ilya Sivchuk’s rights, stating, “We will stand trial next month on fraud charges. The Sivchuks did not willfully defraud Medicare.”


Laurie Mason Schroeder can be reached at 215-694-7489; email: lmason@phillyburbs.com




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