Bettendorf Woman Gets 6 Years for Healthcare & Benefits Scam

DAVENPORT, Iowa – Michele Lynn McGee, 45, of Bettendorf, Iowa, is headed to federal prison after being sentenced to 72 months for a calculated scheme involving wire fraud and the abuse of public assistance programs. Chief United States District Court Judge John A. Jarvey handed down the sentence on February 14, 2018, following a case brought by the United States Attorney Marc Krickbaum’s office. McGee will also serve 3 years of supervised release after her imprisonment and pay $600 to the Crime Victims’ Fund, self-surrendering to a designated prison.

The fraud unfolded between May 2014 and February 2015 while McGee worked as director of sales for UbiCare, a Boston-based healthcare solutions company. McGee’s job was to expand UbiCare’s reach into the Midwest. Instead, she fabricated contracts with five hospitals, totaling a staggering $1,896,375. Each contract bore a forged signature – McGee’s own. She pocketed $115,973 in salary, commission, and bonuses before the scheme unraveled. During a search of her home, McGee confessed to drafting the fraudulent agreements and was ordered to pay $115,973 in restitution to UbiCare.

But the UbiCare scam wasn’t McGee’s only hustle. Investigators discovered a pattern of deception stretching back to February 2012. McGee illegally received Supplemental Nutrition Assistance Program (SNAP) benefits and Title XIX Medicaid benefits from the Iowa Department of Human Services (DHS) for over two years, until July 2014. She deliberately failed to report her household income, knowing full well it would disqualify her. This allowed her to siphon off over $11,000 in fraudulent food stamps and Medicaid, and she was ordered to pay the State of Iowa $11,514.91 in restitution.

The scope of McGee’s dishonesty extended beyond Iowa. From February to August 2012, she worked remotely for RXS Group, LLC, a Utah-based company. McGee falsely claimed to have secured a five-year contract with Nevada prisons to supply pharmaceutical medications. Like the UbiCare contracts, it was a forgery. RXS, believing the lie, developed a business plan for expansion in Nevada, entering into agreements for a pharmacy and equipment – a costly and ultimately fruitless venture. McGee was ordered to pay restitution to RXS in the amount of $384,869.57.

The investigation began with the sharp eyes of the Bettendorf Police Department, who flagged initial concerns. The Federal Bureau of Investigations then took the lead, untangling the web of deceit. The case was successfully prosecuted by the United States Attorney’s Office for the Southern District of Iowa. The combined restitution orders total $511,993.48, a hefty price for a fraudster who thought she could outsmart the system.

McGee’s sentence serves as a stark reminder that financial crimes, even those seemingly confined to the corporate world or public assistance programs, carry serious consequences. The Grimy Times will continue to track federal cases like this, exposing the individuals who prey on businesses and taxpayers alike.

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