Memphis Woman Indicted on 214 Counts of Health Care Fraud
Memphis, TN - Joann McGhee, 45, of Memphis, Tennessee was indicted by a federal grand jury on 214 counts of submitting false and fraudulent claims to defraud health care benefits programs such as Medicare, Medicaid and Tricare in Tennessee, announced Edward L. Stanton, III, United States Attorney for the Western District of Tennessee.
McGhee was the owner of Meridian Human Services in Memphis. According to the indictment, from July 2005 through July 2007, McGhee hired unlicensed social workers and other individuals to perform psychotherapy on residents in adult care facilities and private homes. Instead of psychotherapy, McGhee had the unlicensed employees perform social services, case management services, activities of daily living (ADL) training and recreational activities with the residents. As stated in the indictment, McGhee then implemented a billing scheme to defraud Medicare, Medicaid, and Tricare by submitting through her company, Meridian Human Services, claims for services that were not provided by licensed clinical social workers and claims which McGhee knew to be false. Between July 2005 and July 2007, McGhee submitted fraudulent billings to health care benefit programs in excess of $1,100,000.
The health care fraud charges carry a penalty of not more than 10 years imprisonment, $250,000.00 fine, with three years supervised release and a special assessment fine of $100 per count.
This indictment follows an investigation by Special Agents of the Department of Health and Human Services - Office of the Inspector General and Tennessee Bureau of Investigation - Medicaid Fraud Control Unit. Assistant United States Attorney Stuart J. Canale is prosecuting the case for the United States.
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