Rex Barr, the owner of the Catan Strategy Group has admitted his guilt in a multi Million dollar Medicaid fraud scheme. Barr was responsible for providing transportation services to vulnerable individuals in need, yet the abused his position of trust and defrauded the Medicaid program. The scheme involved overcharging Medicaid consumers of Pennsylvanians for non-medical transportation plans that were often unused or unreliable.
Attorney General Josh Shapiro has disclosed that Rex Barr, the owner of Catan Strategy Group, has pleaded guilty to his involvement in a fraudulent scheme that overcharged Pennsylvania for unnecessary non-medical transportation services. This is part of a more significant case involving four defendants accused of participating in this illegal operation.
How the Catan Strategy Group Owner Overcharged Victims by Millions in Fraud Scheme
According to Josh Shapiro’s investigation, the justice had been served as a defendant who pleaded guilty to charges related to a fraudulent scheme that targeted vulnerable individuals who rely on the state’s Medicaid program. The defendants took advantage of a program that is designed to assist the elderly, sick and disabled by providing essential transportation services to and from medical appointments.
In further investigation of the defendants, Attorney General found that several service coordination agencies were billing large amounts of money for services never provided. After the Pennsylvania Department of Human Services and a managed care organization separately reported that multiple service coordination agencies were billing large amounts of money for services never provided to them.
Fraudulent Activity by Service Coordination Agencies
In 2019, the Pennsylvania Department of Human Services and a Managed care organization alerted the office of the Attorney General to possible fraudulent activity by service coordination agencies. These agencies were suspected of a significant amount of money for services that were never provided.
Between 2017 and 2019, the service coordination agencies received over $7.9 million from the Medicaid program, supposedly for reimbursement for services provided by Rides Your Way. The investigation indicates that each business used a non-medical transportation service provider called Rides Your Way, owned by the owner of Catan Strategy Group, Rux Barr. Although, during the same period, Rides Your Way only provided a total of 1,712 rides to Medicaid consumers. This meant each Rides Your Way ride cost taxpayers an average of more than $4,600.
Consequences of the Catan Strategy Group Owner’s Actions
The consequences of the owner of Catan Strategy Group, Rux Barr’s actions extend is beyond the financial harm. By depriving patients of transportation services, he has put many Medicaid consumers’ health at risk. His actions demonstrate a complete disregard for the welfare of those he was entrusted to serve.
Special Agent Nicole Tomlinson investigated a case of Medicaid Fraud, where Rux Barr, the owner of Catan Strategy Group, pleaded guilty to two counts of Medicaid Fraud, both third-degree felonies, and is being prosecuted by Senior Deputy Attorney General Benjamin McKenna. The victims of Barr’s fraud deserve justice and the office of Attorney General Josh Shapiro is committed to pursuing justice on their behalf.
Rux Barr’s admission of guilt in the multi-million dollar Medicaid fraud scheme is a stark reminder of the importance of holding accountable those who exploit government programs for personal gain.
The owner of the Catan Strategy Group, Rux Barr’s actions put vulnerable individuals at risk and betrayed the trust placed in him as a transportation service provider. Attorney General is committed to upholding the integrity of the Medicaid program and protecting the interests of Pennsylvania’s citizens.
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