Wednesday, January 22, 2014

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Arlington Couple Convicted of Health Care Fraud in Case Investigated by State and Federal Officials

The U.S. Attorney for the Northern District of Texas issued the following news release on Jan. 21, 2014:

Federal Jury Convicts Husband and Wife on Conspiracy and Health Care Fraud Charges

Defendants Owned/Operated a Medical Supply Business and Lab in Arlington

DALLAS — Following a one-week trial before U.S. District Judge Jorge A. Solis, a federal jury has convicted Pamela Adenuga, 39, and her husband, Kehinde (Kenny) Adenuga, 46, both of Arlington 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, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Judge Solis remanded the defendants into custody.  Each defendant faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each count; restitution could also be ordered.  A sentencing date was not set.

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 that several Medicaid beneficiaries, who HGMS billed for incontinence supplies, did not need them or they were 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 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.  The government also introduced evidence that HGMS billed these Medicaid beneficiaries 96 times for adult incontinence supplies – each and every billing was 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 Texas Attorney General's Medicaid Fraud Control Unit. 

Assistant U.S. Attorneys Mindy Sauter and Michael C. Elliott are in charge of the prosecution.