4 plead guilty to Medicare fraud

Four people pleaded guilty Thursday in Baton Rouge federal court to a charge that they participated in a Medicare-fraud conspiracy that resulted in fraudulent billings that totaled as much as $225 million over nearly seven years.

Baton Rouge residents Teryl C. Vincent, Todd D. Ulmer and Nancy N. Reed, along with Greenwell Springs resident June M. Durio admitted they falsified documents that helped two businesses to collect $37.9 million through those billings.

U.S. Attorney Donald J. Cazayoux Jr. said last week that the case is part of a continuing investigation by the FBI and Department of Health and Human Services.

Vincent, 57, Ulmer, 43, Reed, 45, and Durio, 50, also signed statements that showed Medicare lost between $10,000 and $30,000 because of each defendant’s actions.

All four worked for Psychcare of Louisiana, which did business as Shifa Community Health Center in the 6700 block of Goya Avenue, and for Serenity Center LLC in the 1000 block of Lobdell Boulevard. The defendants admitted they falsified billing records for both companies.

Each defendant signed a plea agreement with Justice Department prosecutor Abigail B. Taylor and Assistant U.S. Attorney Shubhra Shivpuri. The agreements also were witnessed by defense attorneys Thomas C. Damico, Michael A. Fiser, Marci Blaize and Steven J. Moore.

Each defendant told U.S. District Judge James J. Brady he or she understood the conviction carries a possible penalty of 10 years in prison and possible fine of $250,000, and expressed awareness that he or she could be ordered to pay restitution for the losses they caused Medicare.

The case is the largest unveiled thus far by the Baton Rouge Medicare Fraud Strike Force, which was formed in December 2009.

Brady accepted the guilty pleas Thursday on behalf of U.S. District Judge Frank J. Polozola, who was assigned the case last week.

Comments

1) Comment by Whatnow - 28/04/2012

No wonder Medicare is broke. This seems to be a constant battle.

2) Comment by serenade - 27/04/2012

@agagent: This is the government paying people in the private sector, or, another way to think of it, the private sector ripping off the government and the taxpayers. Nice try, though.

3) Comment by serenade - 27/04/2012

@wherearewegoing: The article says that these four falsified documents resulting in $10,000 to $30,000 by each of them. The most that comes to is $100,000. Not small change to be sure, but asking that they be disemboweled is a bit of an overreaction. These guys are the little fish in this whole scheme. They accepted plea deals from them to get to the big guys. And believe me, a lighter punishment for these four is worth it to get to them. I know clients that Shifa "serves" and what they are doing is a travesty.

4) Comment by wherearewegoing - 27/04/2012

A POSSIBLE penalty of ten years? Are you kidding me? They stole $225million from the government, and they MIGHT get 10 years? They practically stole from every tax paying citizen in the country! That's MILLIONS of theft charges, all totaled up to one charge resulting in a POSSIBLE 10 years. They'll get much less, serve much less than what they get, and then they'll go fraud someone else, learning from the mistakes that got them caught. Why not rip their organs out, give them to deserving folk, and then bury their empty bodies? White collar crimes have to high of a reward to risk ratio. Our justice system needs to level the playing field and give people an incentive to NOT do this! Possible ten years.....this is ridiculous!

5) Comment by agagent - 27/04/2012

Could have created plenty of jobs if the money were in the private sector and not spent by the government.

6) Comment by tball - 27/04/2012

How many other government agency are being ripped off??

7) Comment by ladyanderson - 27/04/2012

225 million dollars, wow, we need that much for our buget by the end of the fiscal year.