United States Attorney Richard B. Roper
Northern District of Texas

TWO WOMEN ARE INDICTED ON HEALTH CARE FRAUD CHARGES

ABILENE, Texas — A federal grand jury in Lubbock returned earlier this week a twenty-three count indictment charging two women with conspiracy to commit mail fraud and theft and embezzlement in connection with health care, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Laura Cullars Minor, 52, of Abilene, Texas, and Sheri Lynn Mitchell, aka Sheri Samuels and aka Sheri Dawes, 48, of Cleveland, Tennessee, are charged with one count of conspiracy to commit mail fraud and health care fraud, eleven counts of mail fraud and aiding and abetting, and eleven counts of theft in connection with health care.

Minor was an employee of Hendrick Medical Center, d/b/a Hendrick Health Systems (HHS), which was a non-profit entity incorporated in the State of Texas for the purpose of providing medical care and services to citizens of Abilene, Texas, and the surrounding communities. Minor was originally employed as an assistant to the Physician Relations Department and later became the Director of Physician Recruiting for HHS.

From approximately April 2002, to the present, Mitchell owned and was self employed by Physician Source, a physician recruiting business.

According to the indictment, beginning on or about April 2002 and continuing to on or about November 2007, Minor and Mitchell began running a fake invoice scheme. Mitchell would submit invoices to HHS for physician recruiting services that were not provided. Minor would cause the invoices to be paid by HHS. Mitchell would then kickback to Minor amounts ranging from one-third to one-half of the payment. Minor never disclosed her financial relationship with Mitchell to anyone at HHS. During the period of the indictment, it is estimated that Mitchell received over $850,000 in payments from HHS, and Minor received over $280,000 in kickbacks.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted on all counts, Minor and Mitchell face a maximum statutory sentence of 280 years in prison, a $5,750,000 fine and restitution.

U.S. Attorney Roper praised the excellent investigative work of the Federal Bureau of Investigation and thanked HHS for its cooperation in the investigation. The case is being prosecuted by Assistant U.S. Attorney Amy Burch. The investigation remains ongoing.

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