Rachel Pezzuto and her two companies indicted on Medicaid false claims, reverse false claims, and larceny charges for billing MassHealth $853,790 for services not provided and rendered by unqualified staff.

Recovery Journey Service / RJ Recovery LLC (Peabody, MA) — MassHealth Fraud

Outcome: Rachel Pezzuto and her two companies indicted by Statewide Grand Jury for $853,790 in fraudulent MassHealth billing for alcohol and drug counseling services not provided and rendered by unqualified staff.

Rachel Pezzuto (age 49) of Peabody, Massachusetts, operated two substance abuse counseling companies — Recovery Journey Service, Inc. (RJS) and RJ Recovery LLC — through which she submitted fraudulent claims to MassHealth (Massachusetts Medicaid) and managed care entities. The scheme ran from February 2021 through July 2025, generating over $853,790 in fraudulent payments.

The fraud involved two distinct patterns: billing for services that were never actually provided to patients, and billing for services rendered by individuals who were not qualified to provide the billed services. As an alcohol and drug counselor, Pezzuto's companies were required to employ appropriately credentialed staff for the services billed, but the indictment alleges the companies used unqualified personnel while billing at full rates.

The Massachusetts Attorney General's Office indicted Pezzuto and both her companies on multiple counts including Medicaid False Claims, Medicaid Reverse False Claims, and Larceny Over $1,200. The indictment was announced February 2, 2026 by the Statewide Grand Jury.

Primary Source: AG's Office Secures Indictments Against Peabody Alcohol and Drug Counselor and Her Businesses for More Than $850,000 in MassHealth Fraud