Nine Arrested in Major Healthcare Fraud Crackdown

News Summary

In a sweeping operation across North and South Carolina, authorities have arrested nine individuals on federal charges of healthcare fraud targeting Medicaid and Medicare programs. The arrests are part of a national initiative revealing $14.6 billion in fraudulent schemes. Suspects are accused of exploiting Medicaid by selling personal information and submitting false claims for unprovided medical services. Several notable cases have led to significant civil settlements, as authorities continue investigating ongoing fraudulent activities to ensure justice and protect taxpayer dollars.

Charlotte, NC – In a significant crackdown on healthcare fraud, authorities have arrested nine individuals in North and South Carolina on federal charges related to fraud schemes targeting Medicaid and Medicare programs. This operation is part of a larger national initiative that has seen the indictment of 324 individuals, revealing an estimated $14.6 billion in fraudulent activities across the United States.

The arrests, announced on June 30, occurred during a meeting involving the attorneys general of both states, along with representatives from the FBI, IRS Criminal Investigation, and the Department of Health and Human Services. The focus was on dismantling schemes that have allegedly defrauded state and federal healthcare programs.

Locally, the nine suspects are accused of conspiring to exploit Medicaid programs in the Carolinas by unlawfully buying and selling the personal information of Medicaid beneficiaries. Furthermore, those arrested purportedly submitted reimbursement claims for medical services that were never provided.

Among the seven individuals specifically charged with conspiracy to commit healthcare fraud and to engage in illegal kickbacks are:

• David Corey Hill, 54, of Concord, who faces additional charges of conspiracy to commit healthcare fraud and money laundering, and plans to plead guilty in an upcoming court hearing.
• Crystal Sherrell Jackson, 39, of Charlotte, charged with healthcare fraud and money laundering for submitting fraudulent reimbursement claims related to psychotherapy services and urine drug tests to NC Medicaid.
• Tina Marie Armstrong, 67, of Florence, S.C., accused of health care fraud and aggravated identity theft, related to false claims submitted to Medicare and Medicaid for unauthorized durable medical equipment.
• Dee Alice Moton, 51, of Hephzibah, Ga., is charged with healthcare fraud for billing the Veterans Administration for over $2 million for services that were not rendered.

The U.S. Attorney’s Office also announced civil enforcement actions that have led to nearly $5 million in settlements due to violations of the False Claims Act. Notable settlements from this enforcement include:

• Roger Hunter and Dr. Herminia De Guzman Ferreras, owners of Nirvana Hyperbaric Institute, were ordered to pay $200,000 for improperly submitting claims to Medicare.
• Steven Osbey, a Charlotte clinic owner, settled allegations of NC Medicaid fraud with a judgment exceeding $4.7 million.
• Benson I. Ejindu is under complaint for submitting false claims through a durable medical equipment business.
• LabXperior Corporation and its owner agreed to pay $235,000 for billing NC Medicaid for unnecessary urine drug tests.

Federal and state officials detailed several multi-year healthcare fraud schemes, including one involving a Charlotte woman accused of stealing over $1.9 million from NC Medicaid by impersonating a licensed clinical addiction specialist. Another operation, known as “Operation Border War,” involved three Charlotte residents and others who conspired to steal more than $21 million from the South Carolina Medicaid program by manipulating enrollment rules.

Investigations into these fraudulent activities are ongoing, and authorities are encouraging anyone with information regarding Medicaid fraud to come forward. U.S. Attorney Russ Ferguson reiterated the commitment to recovering stolen funds and pursuing justice against those engaged in healthcare fraud.

This latest round of arrests and settlements underscores the federal and state government’s dedication to combating healthcare fraud, protecting vulnerable populations, and ensuring that taxpayer dollars are not misused.

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Additional Resources

• WBTV
• Wikipedia: Healthcare Fraud
• Spectrum Local News
• Google Search: Healthcare Fraud
• Charlotte Observer
• Google Scholar: Healthcare Fraud in the United States
• WSPA
• Encyclopedia Britannica: Healthcare Fraud
• WCCB Charlotte
• Google News: Healthcare Fraud Carolina