Chief Nathan Ogbatue, a Nigerian traditional leader, has amassed millions through his California-based company, California Home Health Agency (CHHA), which provides taxpayer-funded in-home medical care. Between 2018 and 2021, CHHA reported less than $2 million in Medicaid revenue. However, over the subsequent three years, the company's earnings surged to over $34 million, a substantial increase that has raised red flags among fraud experts.
Ogbatue, who was crowned chief of Abatete, Nigeria, in 2012, has been lauded on social media for his philanthropic efforts in his home community. He is credited with funding the construction of a palace, roads, and housing, as well as sponsoring annual medical clinics and providing food for the needy. These projects in Nigeria have taken shape as CHHA's billing within the California Medicaid program saw a dramatic escalation.
Experts reviewing CHHA's billing data have noted concerning patterns. Haywood Talcove, CEO of LexisNexis Risk Solutions for Government, observed an "extraordinary volume of services being billed," with the agency's annual Medi-Cal payments jumping from approximately half a million dollars to $17 million in 2023. Talcove also pointed out that CHHA reached the top tier statewide for the frequency of certain nursing and home-health-aide claims.
Mark Haskins, a fraud expert and former investigator for the U.S. Department of Agriculture, expressed alarm over CHHA's billing totals, its modest office presence, and its failure to file mandatory disclosure forms. Haskins stated that companies with unidentifiable employees, high service billing volumes, and a lack of state utilization reports often exhibit characteristics of fraudulent shell companies that fabricate patient and NPI numbers for fabricated billings.
CHHA's website does not list Nathan or Agnes Ogbatue. When contacted, a representative declined to answer questions, stating it was a customer service line. Attempts to speak with Ogbatue at the agency's Riverside location and his residence were met with deflection. In a phone conversation, Ogbatue initially denied being the chief of Abatete and stated that the investigation would not yield results, asserting that his company's success was due to hard work.
He later told investigators that he had nothing to fear and reiterated that CHHA's revenue increase in 2022 coincided with a health plan contracting for additional home health nursing services. His legal counsel argued that CHHA provides medically necessary care through a network of over one hundred contracted nurses and aides, suggesting that the pandemic increased demand for their services.
During a phone call outside his home, Ogbatue implied the investigation was racially motivated, asking why other individuals who made more money had not been scrutinized. He directed further inquiries to his lawyer, Wilfred Aka, who has faced disciplinary actions from the U.S. Tax Court, the Board of Immigration Appeals, and the California state bar. Aka did not respond to requests for comment.
California's Medicaid program has been a target for fraud, with estimates suggesting that up to 40 percent of spending in the state's home health program is lost to fraudulent activities. No officials have publicly accused CHHA of wrongdoing.