MILWAUKEE MAN SENTENCED FOR RACKETEERING AND MEDICAID FRAUD AS LAST DEFENDANT IN SCHEME

Sep 5 2014
MILWAUKEE MAN SENTENCED FOR RACKETEERING AND MEDICAID FRAUD AS LAST DEFENDANT IN SCHEME

 

MADISON — Attorney General J.B. Van Hollen announced today that Parnell P. Hyman, of Milwaukee, was sentenced on convictions for racketeering and Medicaid fraud related to the submission of claims for fictitious durable medical equipment – the last of eleven defendants to be convicted and sentenced for the fraudulent scheme.

 

On September 3, 2014, Milwaukee County Circuit Court Judge Dennis Moroney sentenced Hyman to a total of 14 years imprisonment – comprising six years initial confinement followed by eight years extended supervision – on one count of racketeering and three counts of Medicaid fraud, and ordered multiple rehabilitative conditions including restitution of $91,497.19.

 

Hyman was engaged in a scheme to defraud the Wisconsin Medicaid program by the submission of false claims for payment for durable medical equipment (DME) used for orthotic purposes.  Orthotics is a branch of medicine that deals with the use of specialized mechanical devices to support weakened joints or limbs.  Medicaid is a healthcare program for those with disabilities and financial need jointly funded by the state and federal taxpayers.

 

“The Medicaid program is designed for our neediest residents.  When individuals, either on their own or through a coordinated scheme such as this one, exploit the system, they take from those who need healthcare assistance the most,” Van Hollen said.  “Let this thorough investigation and aggressive prosecution serve as a warning to others who seek to game the system that we will hold them accountable as well.”   

 

According to the criminal complaint, in 2004 Parnell Hyman was convicted in federal court of mail fraud related to charges he had billed Medicaid, using the company name Genesis Medical Supply, for DME he never provided to patients.  While incarcerated, he met George Woods, Jr. in the same facility.  After release, Hyman and Woods later enlisted others to complete applications to become DME providers with Wisconsin Medicaid under their own business names. 

 

Hyman and Woods then worked with them to submit false claims using the provider numbers for those sham businesses.  The owners cashed the Medicaid reimbursement checks and gave the money to Hyman and Woods, who occasionally returned portions of the money as compensation. 

 

Hyman provided the business plan for the DME companies, which followed the practice of Genesis Medical Supply, by billing for orthotic devices that were not provided to the alleged recipients.  Claims followed for halo cervical devices, tension scoliosis devices, and devices used to support the knee-ankle-foot.  Medicaid was billed a total of approximately $1.3 million by the DME companies – but the Department of Health Services intercepted $199,747.03 after the scheme was uncovered and before it was paid.

 

Those previously convicted and sentenced in connection with the scheme:

 

  • George Woods, Jr., d/b/a Woods Medical Supply -- Convicted on three counts of Medicaid fraud, Woods was sentenced to 12 years imprisonment, comprising five years initial confinement and seven years extended supervision.  Conditions of extended supervision included payment of $257,376.58 in restitution.

 

  • Lynnesha Craig, d/b/a Wisdom Medical Supply -- Convicted on three counts of Medicaid fraud, Craig was sentenced to a total of nine years imprisonment, comprising three years initial confinement and six years extended supervision.  Conditions of extended supervision included payment of $94,095.53 in restitution.

 

  • Darius Jarrett, d/b/a Great Medical Services -- Convicted on three counts of Medicaid fraud, Jarrett was sentenced on the first two counts to a total of six years imprisonment, comprising two years initial confinement and four years extended supervision; on the third count, a sentence of three years and six months imprisonment was imposed and stayed, and Jarrett was placed on three years probation consecutive to the first two counts.  Conditions of extended supervision and probation included $235,871.62 in restitution.

 

  • Elizabeth Thomas, d/b/a Direct Medical Supply -- Convicted on four counts of Medicaid fraud, Thomas was sentenced to a total of 12 years imprisonment, comprising four years initial confinement and eight years extended supervision.  Conditions of extended supervision included payment of $256,914.14 in restitution.

 

  • Kimberly Thomas, d/b/a Cudahy Medical Supply -- Convicted on one count of Medicaid fraud, her sentence of imprisonment for three years and six months, comprising eighteen months initial confinement and two years extended supervision, was imposed and stayed.  Thomas was placed on three years probation with conditions to include six months in the House of Corrections, and payment of $28,220.96 in restitution.

 

  • Donnis Carrington, d/b/a DC Medical Services -- Convicted of one count of Medicaid fraud, her sentence of three years and six months imprisonment was imposed and stayed.  Carrington was placed on three years probation with conditions to include six months in the House of Corrections.  The fraudulent claims totaled $32,250, but the Department of Health Services intercepted payment after it determined the claims were fictitious and before any money was paid out.

 

  • Ericka Thomas, d/b/a Ericka’s Medical Supply -- Convicted on four counts of Medicaid fraud, Thomas was sentenced to 12 years imprisonment, comprising four years initial confinement and eight years extended supervision.  Conditions of extended supervision included payment of $356,366.33 in restitution.

 

  • Erica Danley, d/b/a Essential Services -- Convicted on three counts of Medicaid fraud, Danley was sentenced on the first count to serve one year in the House of Corrections; on the second and third counts, Danley was sentenced to three years imprisonment, comprising one year initial confinement and two years extended supervision on each count to be served consecutively, imposed and stayed.  Danley was placed on four years probation, consecutive to the first count, with conditions to include payment of $114,856.21 in restitution.

 

  • Ronald Hardy, d/b/a Central Medical Supply -- Convicted on one count of Medicaid fraud as party to a crime, Hardy was sentenced to four years imprisonment, comprising two years initial confinement and two years extended supervision.  Hardy was placed on four years probation with conditions to include seven months in the House of Corrections and payment of $63,276.23 in restitution.

 

  • Ferguson Saffold, Jr., d/b/a Central Medical Supply -- Convicted on one count of Medicaid fraud, Saffold was sentenced to four years imprisonment, comprising two years initial confinement and two years extended supervision, imposed and stayed.  Saffold was placed on three years probation with conditions to include payment of $63,276.23 in restitution.

 

 

The case was investigated and prosecuted by the Medicaid Fraud Control and Elder Abuse Unit of the Wisconsin Department of Justice and the Office of the Inspector General in the Wisconsin Department of Health Services.