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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