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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of North Carolina

Friday, June 12, 2015

Alamance County Resident Sentenced For Medicaid Fraud

GREENSBORO, N.C. - United States Attorney Ripley Rand of the Middle District of North Carolina announced today that a Tracie Yvette Clay, 46, was sentenced on June 11, 2015, for Medicaid fraud.

Clay was sentenced by Chief United States District Court Judge William L. Osteen, Jr., to 70 months confinement, a special assessment of 300.00, and 3 years supervised release. Clay must also pay $990,099.58 in restitution to the North Carolina Medicaid program.

Clay pleaded guilty on September 2, 2014, to three health care fraud charges in connection with a scheme to defraud the North Carolina State Medicaid program through the fraudulent provision of behavioral health services. The scheme involved NC Behavioral Health and Counseling Services, Inc., a business incorporated by Clay in February, 2011; Clay was the sole incorporator and was listed as "Pres-CEO." The business was established for administrative purposes and would not offer professional services according to the incorporation papers. Clay submitted billings for Medicaid payments to the North Carolina Division of Medical Assistance. Clay also submitted claims for mental health treatment using "clients" who never received services from NC Behavioral and were unaware that someone was using their Medicaid identification numbers.

United States Attorney Rand stated, "Instead of working within the mission of Medicaid to help the poor, the elderly, and the disabled obtain necessary medical services, this defendant defrauded both the victims and the taxpayers. We will continue to work effectively with our partners to hold those who prey upon vulnerable populations accountable, and we will do everything we can to return much needed funding to the program."

The case was investigated by the North Carolina Medicaid Investigations Division and the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Robert M. Hamilton, and Daniel Spillman and Michael Heavner, Special Assistant United States Attorneys/Assistant Attorney Generals of the Medicaid Investigations Division of the North Carolina Attorney General’s Office.

Attachment: 1:14CR261 Factual Basis


Updated June 12, 2015