PORTLAND, OR (KPTV) – A Springfield woman was sentenced to 21 months in federal prison on Wednesday for healthcare fraud and tax evasion, according to the district attorney’s office.
According to court documents, Saffron Gustafson, 43, owned and operated Saffron’s Specialized Medical, a durable medical equipment company with retail stores in Portland, Springfield, and Salem, Oregon and in Vancouver, Washington between June 2013 and August 2017. Gustafson’s stores supplied customized compression garments to patients with circulatory medical conditions.
Gustafson submitted bills for payment in amounts inflated by 600 percent or more, court documents said. She along with employees under her direction fabricated and later destroyed invoices from her wholesaler so insurance companies couldn’t review them during audits.
The six victim insurance plans are Cambia (Regence), CHAMP VA, Cigna, Kaiser Permanente, TRICARE, and Providence.
Gustafson also evaded paying $99,606 in income taxes she owed for 2015 by falsifying records, using company profits to pay personal expenses, including paying off the mortgage on her parents’ rental property and paying her psychic, according to court documents.
On Nov. 12, 2019, Gustafson pleaded guilty to a criminal information charging her with health care fraud and tax evasion. She was ordered to pay more than $1.3 million in restitution to victim insurance plans.
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