Federal jurors found Simon Katz guilty this week of conspiring to commit healthcare fraud tied to a home health agency scheme that funneled more than $3 million from Medicare, with evidence showing doctored records, unqualified care, and efforts to mislead investigators.
A federal jury convicted Simon Katz of conspiracy to commit healthcare fraud after a six-day trial before U.S. District Judge James Donato. The verdict follows evidence that Katz and others manipulated billing and patient records to secure Medicare payments.
Court filings say Katz conspired with his wife, Veronica Katz, the former CEO of HealthNow Home Healthcare in Hayward, California, and with two former agency employees. HealthNow operated as a home health agency and is central to the allegations of fraudulent billing and falsified documentation.
Prosecutors say the conspirators arranged for unqualified medical personnel to provide patient care beyond their authorized scope, billed Medicare for services that were not provided, and created false paperwork for California Department of Public Health inspectors. Those actions, according to the case record, began when HealthNow started submitting deceptive documents on October 1, 2018 and continued through November 2020.
As a result of the scheme, HealthNow received more than $3 million in payments from Medicare, and Simon Katz allegedly received $300,000 from the agency during the same period. Trial testimony and records presented at trial also detailed efforts to hide the fraud from regulators and federal investigators.
Evidence introduced at trial showed Katz took active steps to impede the investigation. In October 2019, Simon and Veronica Katz met with a former HealthNow employee who had been questioned by FBI agents and instructed that employee to lie about training and supervision by a registered nurse during patient assessments.
“Simon Katz and his wife defrauded Medicare by altering medical records and forging doctor signatures, and in the process stole millions from the hardworking American taxpayer,” said United States Attorney Craig H. Missakian. Simon Katz is the fourth defendant convicted in connection with this investigation, and co-defendant Veronica Katz pleaded guilty to healthcare fraud on April 18, 2024.
Veronica Katz was sentenced on December 9, 2024 to two years in prison and ordered to pay restitution of $543,634.34 to Medicare and a $50,000 fine. Prosecutors say other defendants have also entered guilty pleas in connection with the same investigation and remain involved in ongoing court proceedings.
“This verdict underscores the FBI’s commitment to protecting the integrity of federal healthcare programs and the patients who rely on them,” said Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office. “Katz and his co conspirators orchestrated a deliberate scheme that put vulnerable patients at risk and stole from Medicare. We will continue working with our partners to ensure those who defraud our health care system are held accountable.”
Vennesa Herrera pleaded guilty on Aug. 30, 2021, to conspiracy to commit healthcare fraud and health care fraud and is scheduled for a status hearing on August 3, 2026. Pharadja Andrews also pleaded guilty on August 30, 2021, to conspiracy to commit healthcare fraud and is scheduled for a status hearing on August 3, 2026.
“Successfully uncovering and prosecuting complex health care fraud schemes like this one requires years of determined investigative work and close coordination among federal and state partners,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) San Francisco Regional Office. “This verdict reflects the steadfast efforts of HHS OIG and our law enforcement partners. HHS OIG will continue collaborating with our partners to protect Medicare and uphold the integrity of the programs and patients we are entrusted to serve.”
Katz is currently in federal custody and does not yet have a scheduled sentencing hearing. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine, with any sentence to be imposed after consideration of the U.S. Sentencing Guidelines and 18 U.S.C. § 3553.
Assistant U.S. Attorneys Chris Highsmith and Kevin Yeh are prosecuting the case with assistance from Kevin Costello and Lynette Dixon. The investigation that led to the prosecution was conducted by the FBI, HHS-OIG, and the California Department of Public Health.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division to centralize efforts against fraud. That work, the department says, supports President Trump’s Task Force to Eliminate Fraud, a cross-government initiative chaired by Vice President J.D. Vance that aims to reduce fraud, waste, and abuse in federal benefit programs.
