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Justice News

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

FOR IMMEDIATE RELEASE
Tuesday, September 2, 2014

Medicaid Provider Pleads To Federal Fraud Charges

GREENSBORO, N.C. – A Timberlake, North Carolina, woman pleaded guilty to health care fraud and money laundering, announced United States Attorney Ripley Rand of the Middle District of North Carolina.

Tracie Yvette Clay, 46, of Timberlake, North Carolina, pleaded guilty in federal court in Greensboro before Chief United States District Court Judge William L. Osteen, Jr., to felony charges of health care fraud and money laundering.

Clay operated a mental health business called NC Behavioral Health and Counseling Services, Inc., which allegedly provided mental health assessments and treatment to Medicaid clients. The business had offices in both Durham and Fayetteville, North Carolina. Documents filed at the time of the guilty plea indicated that Clay used the Medicaid identification numbers of individuals who did not know Clay or anything about her company and did not know how Clay obtained their Medicaid identification numbers. Court documents indicate that the loss to the Medicaid program as a result of Clay’s fraud is approximately $1,000,000 (one million dollars).

The defendant faces a maximum penalty of ten years confinement. The plea agreement requires Clay to make restitution to the Medicaid program. Sentencing will occur in Greensboro on December 11, 2014.

The case was investigated by the Medicaid Investigations Division of the North Carolina Attorney General’s Office and agents with IRS - Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Robert M. Hamilton and Special Assistant United States Attorneys Michael Heavner and Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office.

Updated March 19, 2015