LifeWorks Counseling Associates, PLLC, a telehealth mental health provider in New Hampshire, and its owner Dr. David Ferruolo have agreed to pay $300,000 to settle allegations that they violated the False Claims Act. The U.S. Attorney’s Office for the District of New Hampshire announced the settlement on December 10, 2025.
The government alleged that LifeWorks and Ferruolo improperly billed Medicaid for services provided by Erik Alonso, who was excluded from participating in federal health care programs by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) at the time the services were rendered. Federal law prohibits payments for services furnished by individuals who have been excluded from these programs.
To avoid such violations, HHS-OIG advises healthcare providers to check its List of Excluded Individuals/Entities on their website (http://oig.hhs.gov/exclusions).
The settlement amount was determined based on LifeWorks’ and Ferruolo’s ability to pay. There was no admission of liability as part of the agreement.
The U.S. Attorney’s Office also noted that it handled a related criminal case against Erik Alonso with the Criminal Division’s Fraud Section; Alonso pleaded guilty to one count of healthcare fraud on October 23, 2025. LifeWorks and Ferruolo fully cooperated in this investigation.
U.S. Attorney Erin Creegan stated: “A provider is federally excluded from being paid to give heathcare for good reasons, such as prior fraud, criminal convictions, or patient abuse. To protect the public, we will hold accountable those who violate healthcare exclusions.”
Roberto Coviello, Special Agent in Charge for HHS-OIG, said: “The exclusion authority is a cornerstone of our efforts to protect federal health care programs from fraud and abuse. When providers submit claims to the Medicaid program for services rendered by excluded individuals, they violate a fundamental safeguard designed to ensure program integrity. This settlement sends a clear message: we will hold providers accountable when they fail to comply with exclusion rules.”
Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division added: “This settlement should put others on notice that exploiting federally funded health care programs will not be tolerated and those who engage in this type of activity will be identified and held accountable. The FBI will continue to work with our partners to protect taxpayers’ resources from those who would take advantage of such programs for their own greed.”
The investigation was conducted by HHS-OIG and the FBI. Civil Chief Raphael Katz handled the case.
