Consumer Fraud

Former Nursing Home Manager Sentenced For Embezzlement, Medicaid Fraud

woman in hospital bed Former Nursing Home Manager Sentenced For Embezzlement, Medicaid FraudThe former office manager of two Illinois nursing homes was sentenced July 22 to nearly eight months in federal prison and ordered to pay more than $40,000 in fines and restitution after pleading guilty to stealing from four residents.

According to The Telegraph, Kristin Chaudoin, 34, of Decatur, Ill., pled guilty to embezzlement, use of an unauthorized access device, and wire fraud on August 5, 2015. The former manager admitted to stealing from residents of North Church Nursing and Rehabilitation Center in Jacksonville, Ill. And the Lincoln Rehabilitation Center in Decatur, Ill.

Ms. Chaudoin pleaded guilty following an eight-month investigation conducted by the Illinois State Police Department’s Medicaid Fraud Control Bureau (MFCB), and the Social Security Administration’s Office of the Inspector General, the agency’s criminal investigations arm. The agencies were responding to a complaint from the Illinois Department of Public Health in Dec. 2013 about possible misappropriation of residents’ trust funds.

Upon her release from prison, Ms. Chadouin must serve an additional eight months of home confinement, followed by three years of supervised release. She will also pay restitution of $36,314 to the Social Scurity Administration and $4,436 to Aperion Care, which has since acquired the Jacksonville and Decatur nursing facilities.

Like its counterparts in other states, the Illinois MFCB works a myriad of cases targeting Medicaid fraud, and other abuses of the state and federally funded Medicaid program. The MFCB receives direction from the U.S. Health and Human Services Department Office of Inspector General.

Some of the more common cases the Illinois MFCB investigators work are fraudulent billing by doctors, dentists, and counselors for services not medically needed or services which were never performed; financial exploitation of the elderly; drug diversion cases, including theft of controlled substances by registered nurses in nursing homes; medical transportation companies who bill for services not rendered or for more services than those which were actually performed; pharmaceutical supply companies or pharmacies that receive kickbacks for prescribing certain drugs; cases involving physical abuse and neglect at long-term care facilities and other institutions; and violations of the Illinois False Claims Act and the Federal False Claims Act in conjunction with federal investigators.

Illinois State Police
The Telegraph