Winston-Salem Couple Indicted
Winston-Salem Couple Indicted Tax, Healthcare Fraud and Related Violations Charged
Greensboro – John W. Stone, Jr., Acting United States Attorney for the Middle District of North Carolina, announced today that RUBEN D. MCLAIN, age 39, and MICHELLE JUDGE MCLAIN, age 38, of Winston-Salem, North Carolina have been indicted on multiple charges of tax and healthcare fraud and related violations.
The 25 count indictment returned September 27, 2010 charges both RUBEN D. MCLAIN and MICHELLE JUDGE MCLAIN as follows:
- Count One – conspiracy to commit income tax fraud;
- Counts Two through Four – making false statements to a bank;
- Count Five, Nine, Eleven, Fourteen and Twenty-two through Twenty-four – collecting but not remitting employee taxes;
- Counts Six, Seven, Twelve and Fifteen – health care fraud;
- Counts Thirteen, Sixteen, Twenty-one and Twenty-five – tax evasion; and
- Counts Eighteen through Twenty – money laundering.
In addition, MICHELLE MCLAIN is charged in Counts Eight and Ten with making false entries in documents in connection with the Medicaid program, and RUBEN MCLAIN is charged with an additional money laundering offense in Count Seventeen.
According to the Indictment RUBEN D. MCLAIN and MICHELLE JUDGE MCLAIN are the owners and operators of several healthcare companies all formed as Limited Liability Companies (LLC) to include: Technicare Services, Triage Behavioral Health Systems, Reynolds Home Care, Universal Services and Associates, McLain and Associates and Nursing Home Consultants. The Indictment alleges, among other things, that the MCLAIN’s made false statements to a bank when opening accounts by using false tax identification numbers to hide their income from the Internal Revenue Service. The Indictment also alleges the MCLAIN’s concealed their income and used their business accounts to purchase personal items such as a diamond ring, Rolex watch, Porsche automobile and furniture for their home.
A defendant convicted of a charge of making false statements to a bank faces up to 30 years imprisonment, a fine of up to $1,000,000, or both. A defendant convicted of a money laundering or health care fraud charge faces up to 10 years imprisonment, a fine of up to $250,000, or both. The charges of making false entries relating to health care matters, conspiracy, tax evasion, and failure to collect and pay taxes collected from employees carry a maximum term of imprisonment of 5 years. As to each count of conviction the court may also impose a term of supervised release.
The case was investigated by agents of the Internal Revenue Service-Criminal Investigation division, the Health and Human Services Office of Inspector General, the North Carolina Medicaid Fraud Unit, and the North Carolina State Bureau of Investigation.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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