Larry and Annie Jenkins Plead Guilty to Medicare Fraud

Hattiesburg, MS — A husband-and-wife duo from Stringer, Mississippi, has admitted their roles in a years-long scheme to defraud Medicare, with Larry Carlton Jenkins, 60, and Annie Elizabeth Jenkins, 60, pleading guilty on December 16, 2016, to federal charges tied to false billing practices.

Larry Jenkins pled guilty to one count of making a false statement relating to a health care matter, while Annie Jenkins entered a guilty plea on one count of misprision of a felony — a charge reserved for those who know about a felony and actively conceal it. The pair owned and operated Available Medical Supplies, Inc. (“AMS”), a Laurel-area business claiming to dispense medical equipment and compounded inhalation drugs from November 2009 to August 2010.

Through AMS, Larry Jenkins submitted claims to Medicare for reimbursement, falsely representing that the inhalation drugs provided were non-compounded. In reality, the drugs were compounded — a fact that mattered critically after the Centers for Medicare/Medicaid Services changed policy on July 1, 2007, explicitly denying coverage for all compounded inhalation solutions as “not medically necessary.” Despite this, AMS continued compounding and billing as if the drugs were non-compounded.

Annie Jenkins, who served as the company’s compliance officer, was fully aware of the fraudulent billing. Rather than report it, she actively concealed the scheme — failing to alert authorities and taking steps to cover up the false claims. Her role wasn’t passive; it was a calculated effort to protect the flow of illicit funds.

The couple faces steep penalties at sentencing on March 7, 2017, at 10:00 a.m. before U.S. District Judge Keith Starrett. Larry Jenkins could be locked up for up to five years and fined $250,000. Annie Jenkins faces a maximum of three years in prison and the same $250,000 fine. The money they bilked from Medicare lined their pockets while violating the trust of a system meant to help the sick.

The case was investigated by the Health and Human Services Administration Office of Inspector General – Office of Investigations and is being prosecuted by Assistant U.S. Attorney Andrea Jones. No plea deal can erase the betrayal of patients and taxpayers alike.