Two Plead Guilty in Case Involving False Statements to Medicare

Hattiesburg, Mississippi. – Larry Carlton Jenkins and Annie Elizabeth Jenkins, both age 60, of Stringer, Mississippi, pled guilty on December 16, 2016, for their roles in a case involving making false statements to Medicare, announced U.S. Attorney Gregory K. Davis.

Larry Carlton Jenkins pled guilty to one count of making a false statement relating to a health care matter, while Annie Elizabeth Jenkins pled guilty to one count of committing a misprision of felony.

From November, 2009, until August, 2010, Larry Jenkins and Annie Jenkins owned and operated Available Medical Supplies, Inc. ("AMS"), a business which purported to provide medical equipment and compounded inhalation drugs in and around Laurel, Mississippi. AMS, as a medical provider, submitted claims for reimbursement to the Medicare program. During the time period charged, AMS, through Larry Jenkins, represented on claims that the inhalation drugs reflected on such claims for reimbursement were non-compounded inhalation drugs.

As of July 1, 2007, the Centers for Medicare/Medicaid Services revised nationwide policy regarding compounded inhalation solutions. After July 1, 2007, all compounded inhalation solutions were denied as not medically necessary for dates of service on or after July 1, 2007. AMS, after July of 2007, at the direction of Larry Jenkins, continued to compound inhalation drugs but billed Medicare for reimbursement as if they were non-compounded drugs.

Annie Jenkins, the compliance officer, knew of the false statements being made, failed to notify the appropriate authorities, and took affirmative action to conceal the fraudulent billing.

Larry and Annie Jenkins will be sentenced on March 7, 2017, at 10:00 a.m. by U.S. District Judge Keith Starrett. Larry Jenkins faces a maximum sentence of five years in prison and a $250,000 fine. Annie Jenkins faces a maximum sentence of three years in prison and $250,000 fine.

This case was investigated by the Health and Human Services Administration Office of Inspector General - Office of Investigations. It is being prosecuted by Assistant U.S. Attorney Andrea Jones.