Ten Individuals Convicted and Sentenced in Health Care Fraud Scheme

NORFOLK, Va. – Ten former employees of Progressive Counseling Services, LLC, a Virginia Beach based counseling business, were convicted and sentenced for their roles in a scheme to defraud the Virginia Medicaid program. 

The 10 convicted defendants and their respective sentencing information are listed below: 

According to Court records, the defendants conspired to obtain reimbursement payments from the Virginia Medicaid Assistance Program by submitting false claims for mental health support services in 2011 and 2012.  Mental health support services are provided to assist individuals with severe psychiatric limitations to live in the community in the least restrictive environment possible.  Nine of the defendants operated as Qualified Mental Health Professionals and claimed to provide mental health support services to Medicaid-eligible clients in the Tidewater area.  David Weaver operated as a Licensed Mental Health Professional and was responsible for assessing Progressive patients to ensure they required mental health services.  According to Court records, Weaver and Progressive’s owner created fraudulent assessments of Progressive clients to obtain authorization to bill Medicaid for mental health support services.  Once Progressive obtained this authorization, false Medicaid reimbursement claims were submitted on behalf of mental health support services purportedly provided by Selby-Diggs, Barrett, Bing Banks, Etheridge, Jacqueline Harris, Verline Harris, Johnson, Alfreda Stallion, and Johnny Stallion.  These reimbursement claims were false because most of the counselors were unqualified to serve as mental health professionals, the counseling sessions never occurred, and progress notes used to document the sessions were fabricated. 

Weaver, Selby-Diggs, Barrett, Etheridge, and Jacqueline Harris all pleaded guilty to various charges associated with the scheme.  Bing Banks, Verline Harris, Arlette Johnson, Alfreda Stallion, and Johnny Stallion were convicted of various charges after a month long jury trial. 

Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; John S. Adams, Special Agent in Charge of the Federal Bureau of Investigations’ Norfolk Field Office; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. Field Office; Thomas Jankowski, Special Agent in Charge, Internal Revenue Service-Criminal Investigations, Washington, D.C. Field Office; and Steven Anderson, Special Agent in Charge for the Washington Regional Office of the U.S. Department of Labor’s Office of Inspector General-Office of Labor Racketeering and Fraud Investigations, made the announcement after sentencing by United States Chief District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Joseph L. Kosky and V. Kathleen Dougherty prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr137.

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