Suburban woman pleads not guilty in $1.8 million fraud scheme involving medical equipment for cancer survivors

A Downers Grove woman who works for a medical equipment boutique pleaded not guilty Tuesday to federal charges alleging she participated in a scheme to fraudulently bill more than $1.8 million to private insurers for products that were never provided, including breast prostheses, compression garments, and wigs for cancer survivors.

Judy Strzelecki, 74, who worked as an office manager for A Woman’s Place in Downers Grove, entered her plea to a seven-count indictment during a brief hearing before U.S. Magistrate Judge David Weisman.

She was released on her own recognizance and ordered to have no contact with other employees of A Woman’s Place, including the owner, who is not charged but described as a co-schemer in the indictment.

Opened in 2001, A Woman’s Place bills itself as a “premier beauty store” serving the western suburbs and specializes in lymphedema sleeves, custom-molded breast prosthesis, wigs, and other accessories for cancer patients and women with chronic health conditions.

According to the charges, from May 2015 to October 2020, Strzelecki and the owner, identified as Individual A, overbilled Blue Cross Blue Shield and other insurance providers by more than $1.8 million by submitting invoices for services that were either not provided or not medically necessary.

Strzelecki and he co-schemers also fraudulently billed for more expensive products than were provided in order to seek higher reimbursement rates, the 12-page indictment alleged.

Strzelecki was charged with seven counts of health care fraud, which each carry a maximum sentence of 10 years in prison as well as mandatory restitution.

She told the judge Tuesday she spent 30 years in the hospitality industry and currently works part-time at a cafe.

jmeisner@chicagotribune.com

Related posts