Rachel Pezzuto, a 49-year-old resident of Peabody, and her companies Recovery Journey Service, Inc. (RJS) and RJ Recovery LLC (RJ Recovery), have been indicted by a Statewide Grand Jury for allegedly defrauding MassHealth of more than $850,000. The Massachusetts Attorney General’s Office stated that the charges include Medicaid False Claims, Medicaid Reverse False Claims, and Larceny Over $1,200.
According to the Attorney General’s Office, Pezzuto established RJS in 2020 and RJ Recovery in 2022 to offer support and recovery services for individuals with addiction issues. Authorities allege that while these businesses advertised peer recovery coaching—typically reimbursed at a lower rate—they billed MassHealth for higher-paying psychiatric, psychotherapy, and evaluation services. In many instances, it is alleged that these services were not provided or performed when there were no licensed clinicians available.
The Attorney General’s Office further alleges that Pezzuto used National Provider Identification numbers from licensed providers who no longer worked at RJS or RJ Recovery to submit claims for unprovided services. “In using licensed providers’ NPI numbers, the AGO alleges that Pezzuto knew that she was not entitled to the payments she received from MassHealth, yet she never disclosed this information to MassHealth or returned the money,” according to the statement.
The defendants are presumed innocent until proven guilty.
Managing Attorney Katie Cooper Davis, Assistant Attorney General Kimberly Ang, Investigations Supervisor Shelby Stephens, and Investigator Kevin Todd from the Medicaid Fraud Division are handling the case. MassHealth contributed significantly to the investigation.
The Medicaid Fraud Division investigates and prosecutes health care providers accused of defrauding MassHealth. It also addresses abuse and neglect complaints involving long-term care facility residents and Medicaid patients in various health care settings. Individuals can report suspected fraud or abuse through the Attorney General’s website.
The division receives most of its funding from a federal grant by the U.S. Department of Health and Human Services for fiscal year 2026; this covers about three-quarters of its budget with state funds making up the remainder.
