Press Releases

Over $2 Million in Medicaid Fraud Uncovered in New Orleans
10/16/2017

Governor Edwards expansion of Medicaid welfare results in more fraud

Attorney General Jeff Landry today announced the arrests of three New Orleans women as a result of an investigation exposing over $2 million in Medicaid Fraud.  

“We have continued to see Medicaid welfare fraud increase as a result of the Governor’s expansion,” said General Landry. “These arrests highlight not only the ongoing problems in the State's Behavioral Health Program but also the need for more Medicaid fraud detection and aggressive control efforts.”

Lanice Stamps, 44 of New Orleans and owner of A New Direction Support Services, was arrested on 10 counts of Medicaid fraud for allegedly providing false and fraudulent claims for behavioral health services not rendered. Many recipients were fraudulently diagnosed as moderately mentally retarded or severely autistic so that the claims submitted could be billed at a higher level and they had never received counseling services. Stamps also submitted a Renewal Application in order to continue receiving Medicaid benefits for herself and her family totaling $318,297.77. 

Tia Smiley, 39 of New Orleans, was arrested on 10 counts of Medicaid fraud for providing false and fraudulent claims for behavioral health services not rendered. Smiley also allegedly submitted renewal applications for recipient services as part of Governor Edwards’s expansion receiving approximately $26,000 in Recipient benefits.

Lashawndria Kelly, 39 of New Orleans, was arrested on five counts of Medicaid fraud for providing false and fraudulent claims for behavioral health services not rendered. Kelly also allegedly submitted a Medicaid application as part of Governor Edwards’s expansion receiving approximately $10,000 in Recipient benefits.

All three women also allegedly misrepresented their income so they would be eligible to receive Medicaid benefits themselves. They were booked into the East Baton Rouge Parish Prison.

“The Governor’s expansion of Medicaid welfare has exposed our State to even more potential for fraud," said General Landry. "We must increase our fight against welfare fraud so our State's vulnerable may have the services they need."

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Coming soon, the attorney's general office seeks to provide a mechanism by which to take online payments for collections.