Peru Woman Sentenced for Running Medicaid Scheme

This from the Kokomo Tribune:

PERU, IN- A Peru woman who owned Blue Sky Transportation, a medical transportation company, was sentenced Thursday after pleading guilty to running a Medicaid scheme that resulted in over $11,000 in extra payments to the company.Patricia Schaaf was arrested in July on a warrant for 10 felony charges of Medicaid fraud and one count of money laundering.

As part of a plea agreement, she received a four-year sentence with two years executed as in-home detention and two years on probation. She also must pay $11,262.18 in restitution to Indiana’s Medicaid program.

State investigators with the Indiana Office of Attorney General Medicaid Fraud Control Unit initiated an investigation into Schaaf in 2014 after a patient reported the company was endangering her life and others.

During a search of documents at the company’s Peru offices, investigators say they found evidence that Schaaf knowingly billed for services that were never completed, or billed Medicaid for more services than were actually provided, using several schemes.

Investigators say in total, the false claims submitted to Medicaid resulted in $11,260 in extra payments to the company.

Investigators with the Attorney General’s Office were aided in their case by agents with the FBI, IRS and the Health and Human Service’s Office of the Inspector General.

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