Connecticut Counselor Sentenced to Prison for Defrauding Medicaid of Over $650,000

It's a truly disheartening story when someone entrusted with helping vulnerable individuals battling addiction turns around and exploits the very system designed to support them. That's precisely what happened with Stephen Di Giovanni, a licensed drug and alcohol abuse counselor from Madison, Connecticut, who recently received a sentence of one year and one day in federal prison for defrauding Medicaid of a staggering sum exceeding $650,000.

Di Giovanni, 53, pleaded guilty to health care fraud back in April 2023, acknowledging his elaborate scheme to illicitly obtain funds meant for critical health services. For nearly four years, from April 2017 to November 2020, he systematically manipulated the system, showing a profound disregard for both the patients he was meant to serve and the taxpayers funding these programs.

His methods for deception were, frankly, quite brazen. Imagine this: he'd conduct group therapy sessions for his patients, but then, on paper, he would meticulously bill Medicaid as though each individual had received private, one-on-one counseling. Talk about a blatant misrepresentation! But the fraud didn't stop there. Di Giovanni was also caught routinely inflating the duration of sessions, claiming three-hour meetings when they might have been barely an hour long. Worse still, he submitted bills for appointments that never even took place, effectively conjuring phantom services out of thin air.

What makes this case particularly troubling is the additional layer of deceit involved. Investigations revealed that Di Giovanni was also billing for services provided by unlicensed staff, essentially using unqualified individuals while claiming professional-level care. And if that wasn't enough, in a chilling breach of privacy and trust, he even utilized stolen identities of Medicaid recipients to facilitate his fraudulent claims. It's a calculated move that speaks volumes about the depth of his scheme.

Ultimately, the extensive investigation, spearheaded by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, brought his illicit activities to light. U.S. District Judge Sarah A.L. Merriam handed down the sentence, which, in addition to the prison time, includes three years of supervised release. Crucially, Di Giovanni has been ordered to pay full restitution, amounting to $650,424.21 – a testament to the financial damage his actions inflicted.

This outcome serves as a powerful, albeit somber, reminder that those who abuse positions of trust and exploit vital healthcare systems will be held accountable. It underscores the ongoing commitment to protecting essential programs like Medicaid from fraud, ensuring resources are directed to those who genuinely need them, not into the pockets of unscrupulous individuals.