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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Texas

Thursday, May 28, 2015

Husband And Wife Sentenced On Conspiracy And Health Care Fraud Convictions

Defendants Owned/Operated A Medical Supply Business And Lab In Arlington

DALLAS — Two Arlington, Texas, residents who were convicted at trial in January 2014 on all counts of a superseding indictment charging them with one count of conspiracy to commit health care fraud and seven substantive health care fraud counts, were sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.

Pamela Adenuga, 39, was sentenced to 121 months in federal prison, and her husband, Kehinde (Kenny) Adenuga, 46, was sentenced to 60 months in federal prison. In addition, Chief U.S. District Judge Jorge A. Solis ordered the couple to pay $166,653 in restitution.

Since approximately 2007, the Adenugas were the co-owners and operators of His Grace Medical Supply & More (HGMS), located in Arlington. The business also consisted of a lab component that drew and tested blood for Medicare and Medicaid beneficiaries. The defendants’ business was primarily adult incontinence supplies (diapers, wipes, cream, etc.). In fact, 98% of their business was billing Medicaid for these supplies.

Evidence revealed HGMS billed for incontinence supplies for beneficiaries who did not need them or HGMS never delivered the supplies. HGMS falsified files with forged prescriptions from doctors and forged delivery receipts of beneficiaries. The investigation revealed that HGMS billed in excess of $2.6 million solely for adult incontinence supplies.

During trial, the government called doctors and Medicaid beneficiaries to testify that the documents found at HGMS during a search were false and fraudulent.

Dozens of other doctor forgeries were found at HGMS. These forgeries were accompanied by affidavits prepared by the defendants to attest to the accuracy of patient files that were the subject of a Medicaid audit. Medicaid had identified some issues with HGMS billing in 2010, and asked HGMS to substantiate its claims with proper documentation. This documentation was forged and false. More than 100 of those affidavits were prepared on the same day and notarized by a parent of one of the defendants.

The investigation was conducted by U.S. Department of Health and Human Services - Office of Inspector General, the FBI and the Medicaid Fraud Control Unit of the Office of the Attorney General of Texas. Assistant U.S. Michael C. Elliott prosecuted.

Updated June 22, 2015