By Tracy Colman  |  February 5, 2019

Category: Legal News

A woman counsels a man in an office.An Arkansas-based mental health professional was arrested last month over charges of health care fraud.

The therapist had been associated with Preferred Family Healthcare. According to Camden News, Kandice Robinson is accused of billing Medicaid for professional services that were never actually rendered.

Robinson’s practice was the subject of an investigation initiated by a former employee of Preferred Family Healthcare last spring. A complaint was registered with the State Attorney General’s office and followed up by the Arkansas Medicaid Fraud Control Unit.

Rhonda Swindle, a key investigator associated with the health care fraud unit, says that there were eyewitnesses that saw the mental health therapist bill for sessions in which patients were either no-show or otherwise not present.

Robinson was also reportedly seen over-billing for actual services rendered. The health care fraud Robinson is accused of allegedly took place between mid-August and early November 2017.

The former employee along with two Marion branch employees supported their complaints against the therapist by providing the Attorney General’s Office with documentation in terms of receipts, transportation logs, and other evidence.

The records investigated by the health care fraud unit revealed close to 50 purportedly false claims totaling $4,950. While not a huge figure in terms of potential takeaway, the fine that Robinson could incur is double that amount and could be levied in addition to a sentence of up to a decade behind bars. She is the fourth employee of the Preferred Family Healthcare to be charged.

Preferred Family Healthcare Inc. is headquartered in Springfield, Mo. and operates in several states. According to Nonprofit Quarterly, Milton Cranford—lobbyist and administrator of Preferred Family until 2018—pled guilty to charges of bribery amounting to $3.5 million.

This plea in turn led to four state legislators also lodging guilty pleas or being convicted of health care fraud against the U.S. government. Additional lawmakers were forced to step down from their government positions because of the scandal.

According to the Arkansas Times, Preferred Family Healthcare Inc. was the largest provider of Medicaid-based mental health care services to children and adults in Arkansas.

What worked in their favor for a dozen or better years to get and retain this status was the significant lobbying presence that they worked to build and sustain at the Arkansas State Capitol, according to Arkansas Time’s reporters.

Milton Cranford and his cohorts, according to the Arkansas Times, was ostensibly using bribery money to dilute rules and regulations concerning Medicaid and block new oversight policy that could lessen their profit.

Questions remain as to whether these attempts were also efforts to prevent inquiry into their billing practices which could be construed as health care fraud.

The Arkansas Times reported that former executives of Preferred Family Healthcare Inc. spent a huge amount of money on second vacation homes, and indulgences such as World Series tickets and airline travel vouchers for their family pets.

In general, whistleblower and qui tam lawsuits are filed individually by each plaintiff and are not class actions. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual qui tam lawsuit or whistleblower class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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Join a Free Whistleblower, Qui Tam Lawsuit Investigation

If you believe that you have witnessed fraud committed against the government, you may have a legal claim. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.

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