Dunn couple sentenced for health care and tax fraud

From staff reportsApril 11, 2013 

— A Dunn couple will serve time in prison, followed by three years of probation after pleading guilty to health care fraud and tax fraud totaling more than $1 million to the Internal Revenue Service.

According to the investigation, John Curtis Alspaugh, 67, and Helen Blue Alspaugh, 59, founded Basic Home Health Care, Inc., a home health care business that provided personal care services to people who were homebound and needed assistance to perform daily tasks.

The couple collected employment taxes from their employees for tax periods beginning March 2003 through December 2010, but failed to pay the funds, according to investigators. Also, from 2006 through 2011, John Alspaugh submitted bills in excess of $200,000, claiming to have provided services to former clients who were deceased, incarcerated or otherwise not receiving personal care services from Basic Home Health Care, Inc.

John Alspaugh was sentenced in federal court to 40 months imprisonment, followed by three years supervised release and ordered to pay restitution in the amount of $1,614,003.26.

Helen Alspaugh was sentenced to 18 months imprisonment, followed by three years supervised release, and ordered to pay restitution in the amount of $1,392,115.21.

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