Feds: Local health care firm to pay $9.3M penatly to settle civil and criminal visas probe

Alexander Coolidge, Cincinnati Enquirer

Norwood-based Health Carousel, a travel nursing and staffing firm, has agreed to pay a $9.3 million penalty and to pledge an additional $8 million for related health care projects to resolve civil and criminal investigations into its visa-sponsorship program, federal prosecutors said.

The deal resolves criminal fraud and civil False Claims Act allegations that Health Carousel submitted false visa immigrant applications and caused false statements to be made to government officials while recruiting international nurses and other health care professionals, according to the U.S. Attorney's Office, Southern District of Ohio. The allegations included that Health Carousel provided fraudulent job placement letters so that visas would be approved more quickly, even though individuals had not yet been placed with a specific health care facility, prosecutors said in a statement.

The settlement comes after an investigation by agents from Homeland Security and the U.S. Department of Labor Office of Inspector General, as well as the U.S. Citizenship and Immigration Services and the Fraud Prevention Unit at the Department of State’s National Visa Center.

Last week, the staffing firm that places many health care workers from the Philippines to work in the U.S., announced a $6 million settlement to a civil class action lawsuit brought by former employees who had accused it of fraud and violating labor trafficking laws.

On Monday, Health Carousel CEO John Sebastian said in a statement he was happy to resolve the matter with investigators after becoming aware of “problematic conduct” in its visa operations in 2018. He added the company took steps to correct procedures and cooperated with federal investigators during their probe.

“Health Carousel is dedicated to upholding the highest standards of ethical conduct,” Sebastian said. “Health Carousel… accepts responsibility for its prior conduct and is pleased that this resolution brings this matter to a close.”

As part of settlement with federal prosecutors, Health Carousel has taken “extensive remedial measures” to address compliance gaps and pledged an additional $8 million to address harm caused by its prior practices, federal officials said.

The company agreed to a series of donations to several non-profit and non-government organizations:

  • $3 million to promote ethical recruitment of health care professionals

  • $3 million to boost health care access and infrastructure in developing countries where Health Carousel recruits

  • $750,000 to promote health care access in the U.S. for rural and underserved communities

  • $750,000 to support immigrant communities in America

  • $500,000 to support public health projects in Central and Southern Ohio.

“The U.S. Attorney’s Office will ensure that companies that attempt to skirt immigration laws will be appropriately addressed,” U.S. Attorney Kenneth L. Parker said in a statement. “Through these agreements, we ensure the financial accountability that Health Carousel faces will resolve both civil and criminal allegations and will improve health care access in underserved communities here in Ohio and across the United States, as well as in developing countries where Health Carousel operates.”

“It is essential for companies to follow the rules when it comes to recruiting workers to the United States,” said Homeland Security Investigations (HSI) Detroit acting Special Agent in Charge Shawn Gibson, in a statement. ”Given the inherent risks associated with working in the medical field, we need to ensure that there are no shortcuts, and everyone is held accountable under the law.”

This article originally appeared on Cincinnati Enquirer: Health Carousel to pay $9.3M to settle civil and criminal probe into visas

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