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Cutting the Red Tape

  Illinois State Police News Release   

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Chicago Area Doctors and Healthcare Worker Arrested for Medicaid Fraud

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Press Release Date: May 23, 2016    || Archived February 20, 2019
Springfield, Illinois – Officials from the Illinois State Police (ISP) announce the arrest of two Chicago physicians and a healthcare worker on charges related to Medicaid Fraud.  Dr. Hector L. Flores-Arroyo, age 56 of Chicago, Illinois, Dr. Mohan C. Rao, age 82 of Lemont, Illinois, and Susana Araujo, age 61 of Cicero, Illinois, were arrested by Special Agents with the ISP Medicaid Fraud Control Bureau (MFCB) on May 18, 2016.  The arrests stem from a nearly three-year investigation by the ISP MFCB.
In October of 2013, the ISP MFCB received a tip from an anonymous letter sent to the Illinois Department of Healthcare and Family Services - Office of Inspector General of possible illegal Medicaid billing and of someone practicing as a doctor without a medical license.  The ensuing investigation revealed that Dr. Flores-Arroyo, who is not a Medicaid provider and had been previously excluded from the Medicaid program, and Araujo were treating Medicaid recipients at their family clinic, the Blue Island Medical Group located at 1802 West Chicago Avenue, Chicago, Illinois.  The two were then billing Medicaid for services using Dr. Rao’s Medicaid provider number.  The investigation further revealed that Dr. Rao knowingly conspired with Dr. Flores-Arroyo and Araujo to bill Medicaid for services using his Provider Identification Number, and Araujo was indeed practicing medicine without a medical license in Illinois.  
“The success of any criminal investigation is directly attributed to the efforts put forth by the officers working the case,” stated Captain Brian Ley.  “The men and women assigned to the Medicaid Fraud Control Bureau continue to exhibit their dedication and talent when investigating instances of Medicaid fraud.  We encourage, and will continue to thoroughly investigate, any referral submitted to the Illinois State Police Medicaid Fraud Control Bureau,” he continued.
All three subjects were indicted on one count of Vendor Fraud, two counts of Theft, and two counts of Conspiracy.  Vendor Fraud and Theft are both class one felonies and carry a sentence of four to fifteen years in prison.  Conspiracy is a class two felony and carries a sentence of three to seven years in prison.  In addition, Araujo was also charged with one count of Unlicensed Practice of Medicine which is a class four felony and carries a sentence of one to three years in prison. 
The MFCB is comprised of sworn ISP officers, non-sworn investigators, attorneys, analysts, and auditors.  The case is being prosecuted by the Office of the Illinois Attorney General. 

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