U.S. Department of Justice

                                                                                    United States Attorney

                                                                                    Northern District of Indiana

                                                                                                                              5400 Federal Plaza, Suite 1500                                                (219) 937- 5500

                                                                                                                              Hammond, Indiana 46320                                          FAX: (219) 852- 2770

TTD: (219) 933- 1250

                                                                                                     April 19, 2006

FOR IMMEDIATE RELEASE

Released By: Joseph S. Van Bokkelen

                  United States Attorney

                  Northern District of Indiana

                  5400 Federal Plaza, Suite 1500

                  Hammond, Indiana 46320

Contact Person: Christine H. Balzer

                  Public Affairs Specialist

                  219/937-5602 

PRESS RELEASE

                                                            DEFENDANTS SENTENCED

    VALERIE BROWN and GEORGE BROWN were sentenced by United States District Court Judge Theresa L. Springmann March 4, 2005. VALERIE BROWN, age 55, of Gary, Indiana, was sentenced to 27 months imprisonment and 3 years supervised release for health care fraud and conspiracy to defraud the United States. GEORGE BROWN, age 63, of Gary, Indiana, was sentenced to 24 months imprisonment and 3 years supervised release for health care fraud and conspiracy to defraud the United States. The Browns were also ordered to make restitution in the amount of $864,980.84; $569,584.96 to the Indiana Medicaid Program and $295,395.88 to the Internal Revenue Service. Both defendants pled guilty on August 19, 2003.

    The defendants were indicted in August 2002 for over-billing the Indiana Medicaid Program for medical products provided to Medicaid clients. The defendants, through their medical supply business, FIRST CHOICE HOME SUPPLY, INC., an authorized Medicaid provider, over-billed the Indiana Medicaid Program in excess of $400,000 for medical products provided to its Medicaid Clients. FIRST CHOICE HOME SUPPLY, INC., located in Gary, Indiana, sold various home health care related items, such as bandages, liquid skin barriers, and syringes. Valerie Brown was the administrator and George Brown was an owner, president and chief financial officer of FIRST CHOICE HOME SUPPLY, INC.

    United States Attorney Joseph S. Van Bokkelen commented, “Health care fraud is an area of concern which will continue to be a high priority for this office. I commend the efforts of all those involved in this prosecution.”

    This case was investigated by the Medicaid Fraud Control Unit of the Indiana Attorney General’s Office, the Internal Revenue Service, the Federal Bureau of Investigation, and the U.S. Department of Health and Human Services, and was prosecuted by Assistant United States Attorney Diane L. Berkowitz.

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