The Massachusetts Attorney General’s Office (AGO) announced that Rachel Pezzuto,49, of Peabody, and her two companies, Recovery Journey Service, Inc. (RJS) and RJ Recovery LLC (RJ Recovery), were indicted by a Statewide Grand Jury on multiple charges related to fraudulently billing MassHealth and MassHealth managed care entities (MCEs) for services they did not provide and for services that she and her companies were not qualified to render. The AGO alleges that, as a result of her conduct, MassHealth paid more than $853,790 for fraudulent services between February 2021 and July 2025. Each defendant is charged with one count of Medicaid False Claims, Medicaid Reverse False Claims, and Larceny Over $1,200. Pezzuto opened RJS and RJ Recovery in 2020 and 2022, respectively, to purportedly provide support and recovery services to individuals struggling with addiction. The AGO alleges that, despite advertising peer recovery coaching services, a service that is paid at a lower rate, Pezzuto and her companies billed MassHealth for psychiatric, psychotherapy, and evaluation and management services, which are paid at a higher rate. The AGO also alleges that, in many cases, these services were not rendered, including during times when there were no licensed clinicians on staff to perform these types of services.