Vanessa Roberts Avery, U.S. Attorney | U.S. Attorney for the District of Connecticut
Rachel Collins, a 44-year-old professional counselor from Hamden, has been sentenced to 37 months in federal prison for defrauding Medicaid of over $1.6 million. This announcement was made by Marc H. Silverman, Acting United States Attorney for the District of Connecticut. Following her imprisonment, Collins will be subject to three years of supervised release.
Collins owned Rachel Collins, LPC Counseling Services LLC in North Haven and was enrolled as a Behavioral Health Clinician provider in the Connecticut Medicaid Program. She provided psychotherapy services primarily to children and adolescents with behavioral and mental health issues.
Between January 2018 and March 2024, Collins submitted fraudulent claims to Medicaid for services that were never rendered. These claims included dates when she was employed full-time elsewhere, days when she billed more than 24 hours of service, times she was out of state or during holidays and weekends, and instances where the claimed clients were hospitalized or had never been treated by her.
An example from March 9 to March 16, 2023, showed Collins submitting 96 false claims for approximately 12 hours of daily psychotherapy while vacationing at Disney World. For these claims alone, Medicaid paid her $9,349.90 despite no patients being treated during that period.
Throughout this scheme, Collins also took multiple trips across the U.S., attended over 30 concerts and events, and spent more than $150,000 on food delivery services such as Uber Eats and DoorDash. In total, she submitted over 17,000 false claims amounting to $1,647,031.51 defrauded from Medicaid.
Judge Sarala V. Nagala ordered Collins to pay full restitution for her actions. During the investigation phase, Collins agreed to forfeit $114,085.55 seized from one of her bank accounts.
From January 2020 through May 2023, Collins was identified as the highest-paid behavioral health clinician enrolled in Connecticut's Medicaid program. The investigation further uncovered that between November 2020 and September 2021—while receiving substantial Medicaid reimbursements—she also collected $41,182 in unemployment benefits under false pretenses by certifying weekly that she had not worked or been self-employed.
On August 6th last year (2024), Collins pleaded guilty to one count of healthcare fraud charges against her; however currently released on a $100k bond until reporting back into custody April next year (28th).
The investigation leading up this prosecution involved collaboration between Federal Bureau Investigation (FBI) alongside U.S Department Health Human Services Inspector General Office plus assistance received locally via Connecticut Social Services Department under guidance led chiefly Assistant Attorney David Huang who successfully prosecuted case itself overall today meanwhile encouraging public vigilance towards potential similar crimes being reported directly toll-free hotline number provided: "People who suspect health care fraud are encouraged report it calling '1-800-HHS-TIPS.'"
