An eye doctor from Bristol, Connecticut, Helen Zervas, has admitted guilt in a significant case of defrauding Medicaid and Medicare. The plea, entered on Tuesday, also involves conspiracy charges, alleging collusion with two public officials to obstruct an audit into her optometry practice back in 2020. This case highlights the vulnerabilities within the healthcare system and the measures taken to exploit programs like Eye Doctor Medicaid services for personal gain.
In the Bridgeport U.S. District Court, Assistant U.S. Attorney Jonathan Francis detailed a carefully constructed scheme. Zervas reportedly issued a $95,000 check to a first individual, who subsequently channeled funds to a second accomplice. Federal prosecutors argue that this payment was orchestrated as compensation for the second individual to exert pressure on Connecticut state employees, ultimately leading to the cancellation of a scheduled audit of Zervas’s practice.
While the federal prosecutors have not publicly named the two individuals implicated in the 2020 conspiracy, a press release from the U.S. Attorney’s office identified them as a “Connecticut State Representative” and a “senior official in the State’s Office of Policy and Management.” Past investigations by The Connecticut Mirror have revealed subpoenas for records related to Zervas and the unusually cancelled audit of her practice, adding layers to this unfolding narrative.
Medicaid overpayments, while not uncommon, are typically addressed through provider reimbursements and potential audits. However, records indicate that since mid-2017, the audit of Zervas’s practice remains uniquely cancelled, as reported by the CT Mirror last year. This anomaly raised red flags and intensified scrutiny on the circumstances surrounding the dropped investigation.
The investigation trail has uncovered communications involving former state Rep. Christopher Ziogas, Zervas’s fiancé, and Konstantinos Diamantis, former state deputy budget director, who reportedly shares a church affiliation with Zervas. Diamantis had previously informed the CT Mirror about personally delivering a check of nearly $600,000 to the state Department of Social Services (DSS). This substantial sum was intended to repay the Medicaid program for improper billings by Zervas’s practice.
Following this significant payment to DSS in Hartford, the scheduled audit into Zervas’s optometry practice was abruptly terminated. This cancellation prevented state auditors from conducting a thorough review of her records, which could have potentially uncovered further financial discrepancies and resulted in the recovery of additional funds for the state.
Both Diamantis and Ziogas have previously asserted to the CT Mirror that the $600,000 payment was lawful and denied any connection between their actions and the cancellation of the audit. Diamantis stated, “I do not know the DSS process,” while Ziogas added, “They can look at whatever they want. I’ve got nothing to hide,” in their defense against any wrongdoing.
Despite these denials, federal prosecutors remained tight-lipped outside the courtroom regarding whether Diamantis or Ziogas were the unnamed co-conspirators. However, during the plea hearing, Zervas herself admitted that the conspiracy’s objective was indeed to halt the state Medicaid audit. She also concurred with prosecutors that the $95,000 payment was a bribe intended to influence the second public official to pressure DSS employees.
The full scope of evidence against Zervas and her co-conspirators was not disclosed during Tuesday’s plea hearing. Prosecutor Francis mentioned that the evidence collected was “copious,” including text messages between Zervas and the two unnamed individuals. These messages reportedly contained “admissions” related to the conspiracy’s goals.
According to the prosecutors, Zervas sought to avoid the audit fearing potential legal repercussions for fraudulently billing the state’s Medicaid program for procedures deemed medically unnecessary or never performed. The allegations specify that Zervas fraudulently billed the Medicaid program on over 300 occasions between 2015 and 2020. Similar fraudulent billing practices, though less frequent, were also alleged with Medicare patients.
Zervas now faces a potential prison sentence ranging from 70 to 87 months under federal sentencing guidelines. Prosecutors have indicated they might seek revisions to this sentencing recommendation. It remains unclear whether Zervas’s plea deal involves cooperation with the ongoing federal investigation. Records show a grand jury investigation was active as recently as November 2024, with a subpoena issued to DSS for Medicaid enrollment information.
Diamantis, already facing separate charges, including 22 counts of extortion, bribery, conspiracy, and lying to federal investigators related to school construction contracts, adds another layer of complexity to this case. A 35-page indictment alleges Diamantis extorted contractors and accepted bribes in connection with school construction projects. He has pleaded not guilty and is currently out on $500,000 bail.
Norm Pattis, representing Diamantis, commented on Zervas’s plea, stating, “After all these years and months of meetings and pressure on this poor woman, this is all the feds can come up with? The Justice Department seems desperate.” Diamantis’s trial is scheduled later this year, suggesting further developments in this intricate web of alleged corruption and fraud involving eye doctor medicaid and related state programs.
