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Justice News

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

FOR IMMEDIATE RELEASE
Wednesday, June 15, 2022

Therapist’s ex-wife charged with defrauding Medicaid and stealing patient information

HOUSTON – A 47-year-old Katy resident has been indicted for defrauding Medicaid of more than $600,000, announced U.S. Attorney Jennifer B. Lowery.

Authorities took Kay Le Farmer into custody today. She is expected to make her initial appearance before U.S. Magistrate Dena Hanovice Palermo at 1 p.m.

On June 9, a federal grand jury returned the 22-count indictment which was unsealed upon her arrest today.

According to the charges, Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider. Following their separation, Farmer allegedly used her ex-husband’s provider number to submit fraudulent claims to Medicaid for counseling services that were never provided.

From 2013 until 2018, Farmer allegedly submitted or caused the submission of approximately $617,983.86 in claims for psychotherapy services that were not provided. The indictment alleges Farmer was paid approximately $432,924.69 on those claims.

In 2017, Farmer even used her employment at a pediatrician’s office to obtain patient information, according to the allegations. She then allegedly submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.

According to the charges, Medicaid monies were deposited into accounts Farmer controlled.

If convicted,  Farmer faces up to 10 years in federal prison and a possible $250,000 maximum fine for each count of health care fraud.  

The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.

Topic(s): 
Health Care Fraud
Component(s): 
Updated June 15, 2022