Perry County hit in Medicaid fraud case

Attorney General Todd Rokita recently marked another successful case investigated and prosecuted by his Medicaid Fraud Control Unit (MFCU). In 2021, the unit has now been involved in 53 cases resulting in guilty verdicts.

This month, the owner and operator of a Southern Indiana laboratory pleaded guilty to the crimes of theft and identity deception in connection with a scheme to defraud the Medicare and Indiana Medicaid programs.

“The theft of money from government insurance programs dedicated to serving our most vulnerable populations is a theft against every Indiana citizen,” Attorney General Rokita said. “We must always hold accountable those who commit these selfish acts. That’s exactly what our office has done by working with our federal partners to bring this matter to a successful prosecution.”

The conviction and sentencing of Betty Hanks, owner and operator of Liberty Labs Inc. in Perry County, followed an in-depth investigation by the Indiana MFCU and the U.S. Department of Health and Human Services’ Office of Inspector General.

Investigators determined that Hanks billed for medically unnecessary services and misrepresented the services she did provide. Hanks pleaded guilty and was sentenced earlier this month in a Perry County court to three years’ probation for her theft conviction and two years for her identity deception conviction. She was also ordered to repay $63,642.65 in restitution to Medicare and Indiana Medicaid.

The Medicaid Fraud Control Unit has now recovered more than $8 million for the Indiana Medicaid program so far in 2021. Across all divisions, the Office of the Indiana Attorney General has recovered more than $206 million this year on behalf of Hoosiers.

Attorney General Rokita thanked the MFCU staff members who worked diligently on this investigation and prosecution, including Investigator Brian Goodwin and Deputy Attorney General Grainne Kao

The Indiana Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a federal grant. The remaining 25 percent is funded by the State of Indiana.