Indiana attorney general part of $2.5B Medicaid fraud action

Indiana Attorney General Todd Rokita’s office, through its Medicaid Fraud Control Unit, announced Wednesday that it joined more than a dozen states and the federal government in a nationwide enforcement action against 78 individuals charged with $2.5 billion in Medicaid fraud.

According to the U.S. Department of Justice, defendants allegedly defrauded Medicaid and Medicare programs and some used those proceeds to purchase exotic automobiles, jewelry and yachts. The Justice Department seized millions in cash, automobiles and real estate related to the schemes.

“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said U.S. Attorney General Merrick B. Garland in a written statement. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”

The Indiana Attorney General’s Office investigated eight cases against licensed health care professionals and medical offices. Department attorneys, with the assent of local prosecutors, will pursue charges against the accused.

“In Indiana, Medicaid benefits are intended to help provide needed medical care for disabled and low-income Hoosiers,” Rokita said in a statement. “Unfortunately, unscrupulous providers all too often try to divert these resources to serve their own selfish desires. In the process, they scam their fellow taxpayers whose hard-earned money supports these programs. Our team of lawyers and investigators will continue to hold accountable all those who illegally try to defraud the system.”

Level 6 felony charges, as described by the Attorney General’s Office, include:

• Columbus LPN Erin McMillan, 44. McMillan faces charges for obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep or furnish a record. Complaint filings include video footage of McMillan obtaining narcotic medications but not administering them and staff alleged that she put items into her personal bags at work.
• Indianapolis RN Wendy Hahn, 52. Hahn is charged with obtaining a controlled substance by fraud and furnishing false or fraudulent information as well as a class A misdemeanor for theft. A Rush County officer arrested Hahn on an unrelated charge and found controlled substances packaged for Hancock County patients while searching her vehicle, according to the complaint.
• Plainfield’s Heather Heugel, 37. Heugel is charged with obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep, or furnish a record.
• Merrillville LPN Kandice Duke, 43. Duke faces charges for obtaining a controlled substance by fraud/deceit or subterfuge. Allegedly, Duke stole narcotic pain medication prescribed for residents at a Crown Point facility.
• Michigan City’s Traci Lindfors, 50. Lindfors is charged with obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep, or furnish a record. According to the complaint, Lindfors, who worked at a residential facility, allegedly withheld medications from patients to keep them for herself.
• Michigan City RN Victoria Lee Bell, 57. Bell faces charges for obtaining a controlled substance by fraud and failure to make, keep or furnish a record. Bell admitted to stealing medication, allegedly.
• Hartford City RN Melissa Lou Fannin, 43. Fannin is charged with obtained a controlled substance by fraud; furnishing false or fraudulent information; and possession of a narcotic drug. Allegedly Fannin, while working at a hospital, dispensed hydromorphone at a rate 155% higher than a coworker and took the controlled substance for her own use.

In the above charges, “LPN” stands for licensed practice nurse and “RN” stands for registered nurses.

One of the accused, Marshall County’s Daniel Tanner, 52, faces a Level 5 felony for aiding, inducing or causing the practice of medicine without a license in addition to a Level 6 felony charge for issuing an invalid prescription and a Class B misdemeanor for practicing nursing while his license was suspended or revoked.

His brother, David Tanner, 55, is also charged with practicing medicine with a license, a Level 5 felony, and practicing nursing while his license was suspended or revoked.

Daniel Tanner, a nurse practitioner, owned and operated Concierge Medicine in Marshall County and hired his brother, David, as a nurse even though his nursing license was indefinitely suspended, according to the allegations.

Indiana is one of several states involved in the nationwide enforcement, which includes investigators from Florida to Washington state, from pharmaceutical fraud to telemedicine fraud. Cases will be posted to the Justice Department’s website as they progress.