Print VersionMarch 9, 2007
THREE INDICTED IN WHEELCHAIR FRAUD CASE
[HOUSTON, TX] – A 46-count health care fraud indictment charging Sandra Thurman Patino, also known as Sandra Thurman; Anthony D. Thurman; and Katrice Lashunn Oliver, also known as Katrice Warren, was unsealed today following the arrest of the three defendants, United States Attorney Don DeGabrielle announced today.
Patino, 43, along with Thurman, 25, were arrested this morning at their Houston area home by special agents of the FBI. Oliver, 24, was arrested at her Pasadena area home by agents of the Department of Health and Human Services Office of Inspector General and investigators of the Houston office of the Texas Attorney General Medicaid Fraud Unit. All three are expected to make their initial appearances before a United States Magistrate Judge in Houston this afternoon.
According to allegations in the 46-count indictment, which was returned under seal by a Houston grand jury on Thursday, March 8, 2007, Patino, Thurman and Oliver owned or operated -- in whole or in part -- two durable medical equipment companies in Houston: Thurman Family Medical Supply (TFMS) and Seniors Comfort & Care Medical Supply (Seniors). From the summer 2002 until January 2003, the two companies billed Medicare almost $4 million and were paid approximately $2.6 million, primarily for motorized wheelchairs and related accessories.
While the Medicare recipients were billed for motorized wheelchairs and related accessories, the indictment alleges patients usually received a less expensive scooter. For those who did receive a motorized wheelchair, the indictment alleges that the patients did not meet the medical qualifications to receive one. During the time frame alleged in the Indictment, the reimbursement rate for a K0011 motorized wheelchair and related accessories was approximately $4,700. A scooter costs approximately $800 to $1,000 wholesale.
All three defendants are charged with health care fraud and conspiracy. The statutory maximum penalty for a violation of the health care fraud statute is imprisonment of not more than 10 years. The conspiracy count also carries a statutory maximum penalty of not more than 10 years imprisonment. Each statute also carries a statutory maximum fine of $250,000.
The defendants are also accused of laundering the proceeds of their fraud by making numerous cash withdrawals of more than $10,000 from checking accounts where Medicare funds were deposited, knowing that the funds were proceeds from illegal activity. If convicted of this money laundering charge, the defendants face a statutory maximum penalty of 10 years imprisonment, and a $250,000 fine or twice the value of the property involved in the transaction whichever is greater. The indictment also accuses the defendants of having used fraudulently obtained money to purchase durable medical equipment, in furtherance of the scheme to defraud Medicare. The statutory maximum penalty for laundering money with the intent to promote the unlawful specified activity is 20 years imprisonment, $500,000 fine or twice the value of the property involved in the transaction which ever is greater, and up to 3 years of supervised release.
Patino and Thurman are also charged with receiving illegal kickbacks in the sale of patient information and prescriptions for wheelchairs to other durable medical equipment companies. The prescriptions and Certificates of Medical Necessity (CMN’s) are needed to process a claim to Medicare and Medicaid, from various marketers. The statutory maximum penalty for violating the Anti-Kickback statute is a maximum of five y ears imprisonment and a $250,000 fine.
This case was the result of the investigative efforts of the Federal Bureau of Investigation, the Texas Attorney General’s Medicaid Fraud Unit in Houston; U.S. Health & Human Services-Office of the Inspector General, Office of Investigations; and the U.S. Attorney’s Office. The prosecutor is Special Assistant United States Attorney Suzanne Bradley.
An indictment is an accusation of criminal conduct, and not evidence. The defendants are presumed innocent unless and until convicted through due process of law.
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