DOJ Seal Department of Justice  

United States Attorney John M. Bales
Eastern District of Texas

FOR IMMEDIATE RELEASE                                           CONTACT:  DAVILYN WALSTON
THURSDAY, JULY 22, 2010                                            PUBLIC INFORMATION OFFICER                                                                  DIRECT (409) 981-7902
                                                                                                                     CELL (409) 553-9881


            TYLER, Texas – A 49-year-old Henderson, Texas woman has pleaded guilty to federal health care fraud related charges in the Eastern District of Texas announced U.S. Attorney John M. Bales today.

Sheena Shelton pleaded guilty to health care fraud and wire fraud today before U.S. Magistrate Judge John D. Love.

            According to information presented in court, from 2003 to 2009, Shelton controlled and operated KC Medical Supplies, a durable medical equipment supplier in Longview, Texas.  During that time, Shelton devised and carried out a scheme to defraud Medicare and Medicaid by submitting fraudulent claims for equipment and supplies which had not been prescribed or authorized by a physician.  Shelton prepared documents that falsely represented that physicians had prescribed or ordered medical equipment for certain beneficiaries although they had not.  Shelton forged the signatures of local physicians to fraudulent claim forms before submitting them to Medicare and Medicaid for payment.

Shelton faces up to 10 years in federal prison for the health care fraud charge and up to 20 years in federal prison for the wire fraud charge.  A sentencing date has not been set.

This case is being investigated by the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), and the FBI and prosecuted by Special Assistant U.S. Attorney Nathaniel C. Kummerfeld.




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