Health Carousel agreed to pay $9.25 million and pledged an additional $8 million for healthcare projects to resolve a federal investigation over visa fraud, the US Attorney’s Office for the Southern District of Ohio announced. 

The Cincinnati-based healthcare staffing firm allegedly submitted false visa immigrant applications and facilitated false statements to government officials while recruiting nurses, physical therapists and other healthcare professionals to the US, according to the US Attorney’s office.

Allegations include providing fraudulent job placement letters to expedite visa approvals, even though individuals had not been placed with specific healthcare facilities.

“While Health Carousel acted lawfully and in good faith, we decided that agreeing to this settlement is in the best interest of our company and our healthcare professionals,” Health Carousel said in a prepared statement to Cincinnati Enquirer, adding it was “proud of its business practices” and the well-being of its workers was “very important” to the company.

“We are pleased to bring this four-year old matter to a close and continue to focus on our mission of bringing highly trained healthcare professionals to the United States to help address nationwide staffing shortages.”

Health Carousel officials added progress in the case strengthened their hand.

“The plaintiffs’ allegations fell apart during the sworn deposition, which ultimately led to a speedy resolution,” company spokeswoman Kelly Love said.

The global resolution resolves criminal fraud and civil False Claims Act allegations.

As part of the settlement, the company has performed extensive remedial measures to address compliance gaps and pledged an additional $8 million to address harm caused by its prior practices.

The pledged funds will be distributed to various nongovernmental and nonprofit organizations, including:

• $3 million to promote the sustainability, development and ethical recruitment of healthcare professionals;
• $3 million to strengthen healthcare access and infrastructure in developing countries where Health Carousel recruits healthcare professionals;
• $750,000 to promote healthcare access in the United States for rural and underserved communities;
• $750,000 to support immigrant communities in the United States; and
• $500,000 to support public health projects in Central and Southern Ohio.

Founded in 2004, Health Carousel provides workforce placements for healthcare professionals and recruits professionals, including nurses and physical therapists, who come to the US through Passport USA, which supports the individuals’ visa applications.

“It is essential for companies to follow the rules when it comes to recruiting workers to the United States,” said Homeland Security Investigations Detroit Acting Special Agent in Charge Shawn Gibson in a press release. “Given the inherent risks associated with working in the medical field, we need to ensure that there are no shortcuts and everyone is held accountable under the law.”