Damico & Stockstill, Attorneys at Law

8 arrested on Louisiana Medicaid fraud scheme

If you're accused of being part of a fraud scheme, your life could be at risk. There are often times when federal crimes are punished with prison sentences or heavy fines that could impact you for many years to come. That's why you should make sure that your fraud case is discussed and understood before heading to court or making any kind of plea deals.

Take for instance this case that involves eight people in Louisiana. A mother and daughter who own and operate a personal services company, two of the mother's sons, and four other people have been accused of Medicaid fraud. According to the news, they have allegedly been overcharging Medicaid for work that was never completed by their employees.

The company, Majestic Home Care Services LLC, allegedly shared Medicaid proceeds with patients through bank deposits and cash payments. The company, which is supposed to provide grooming and bathing services, cooking services, and other necessary home health care services, may never have performed the work.

The Louisiana Attorney General's Office Medical Fraud Control Unit investigators have claimed that a 33-year-old woman and her mother, age 56, allowed patients to sign off on time sheets that showed employees working over 40 hours per week in some cases. It's believed that the time sheets were inflated and represent time when employees weren't working at all.

According to the story, the Medicaid program requires patients to sign off on workers' time sheets to make sure the services were provided. In this case, the patients may have signed off when the work wasn't done, and that's considered fraud. Eight people have been arrested so far, but the Attorney General's spokesman does not expect anyone else to be arrested in relation to this case.

Source: The Advocate, "Eight arrested in Medicaid fraud scheme in Donaldsonville" No author given, Jun. 05, 2014

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