LifeWorks Counseling Associates, PLLC, a telehealth mental health provider based in New Hampshire, and its owner Dr. David Ferruolo have agreed to pay $300,000 to resolve 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 United States alleged that LifeWorks and Ferruolo submitted claims to Medicaid and received reimbursement for services provided by Erik Alonso, who was excluded from federal health care programs by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) at the time those services were rendered. Federal regulations prohibit payments for services furnished by individuals excluded by HHS-OIG.
According to the U.S. Attorney’s Office, LifeWorks and Ferruolo cooperated fully in a parallel criminal investigation into Alonso’s conduct. Erik Alonso pleaded guilty to one count of healthcare fraud on October 23, 2025.
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 case was investigated by HHS-OIG and the FBI and handled by Civil Chief Raphael Katz. The settlement amount reflects LifeWorks’ ability to pay; there was no admission of liability.
