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This week a federal jury found Simon Katz guilty of conspiracy to commit health‑care fraud. The verdict came after a six‑day trial in U.S. District Court in San Francisco. The case centers on a Bay Area home‑health agency that prosecutors say turned patient care into a cash machine and billed Medicare for services that were never properly provided.
Jury verdict and criminal exposure
The jury convicted Katz of one count of conspiracy to commit health‑care fraud. U.S. District Judge James Donato presided over the trial. Katz is now in federal custody and faces up to 20 years in prison and a $250,000 fine on the single count convicted. Any sentence will be set by the judge after federal sentencing rules are considered.
How the alleged scheme worked
Prosecutors say Katz conspired with his wife, the former CEO of HealthNow Home Healthcare, and two former employees. They presented evidence that unqualified staff provided care outside their scope, that the agency billed Medicare for visits and services that weren’t given, and that medical records were falsified to hide the fraud. From late 2018 through 2020 the agency’s false claims brought in more than $3 million in Medicare payments, and Katz personally received roughly $300,000. Trial evidence also showed he told an employee to lie to federal investigators — because apparently honesty is optional if you want a cut of the taxpayers’ money.
Officials praise enforcement amid a national anti‑fraud push
Federal prosecutors and investigators framed the conviction as part of a wider effort to stop people who steal from federal health programs. United States Attorney Craig H. Missakian called the conduct theft from hardworking taxpayers. Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office said the verdict shows the FBI’s commitment to protecting Medicare. Special Agent in Charge Robb R. Breeden of HHS‑OIG echoed that HHS‑OIG will keep working to protect patients and the program. The case was handled by the U.S. Attorney’s Office for the Northern District of California and investigated by the FBI, HHS‑OIG, and the California Department of Public Health — part of a broader national focus that includes the Department of Justice’s new National Fraud Enforcement Division and the White House task force on fraud.
What comes next and why this matters
Katz’s sentencing date has not been set. His wife and two former employees already pleaded guilty in the probe; one co‑defendant has been sentenced and others have ongoing court dates. Beyond prison time and fines, the real cost is to Medicare and patients who depend on trustworthy care. Medicare fraud like this drives up costs for everyone and shakes public trust in health programs. This verdict should be a warning to anyone treating federal health care as a slush fund: fraud will be pursued, and the taxpayers will want their money back — with interest.
