A federal jury in Charlotte has handed down a guilty verdict against Charlotte Elizabeth Garnes, 37, of Charlotte, North Carolina, for her role in a massive Medicaid fraud scheme that swindled the program out of at least $650,000. The scheme, which spanned from March 2009 to April 2011, involved Garnes and her co-conspirators filing false claims for mental and behavioral health services that were never provided to Medicaid recipients.
According to trial evidence, Garnes, a Licensed Professional Counselor, was approved by Medicaid to provide mental and behavioral health services to qualified individuals. However, instead of providing the services herself, she conspired with others, including Teresa Marible, Michele Jackson (a/k/a Sylvia Jackson), to permit unqualified individuals to submit claims to Medicaid under her provider number. The government established that Garnes kept 30% of the fraud proceeds and distributed the remainder to her co-conspirators.
During the trial, the government presented evidence that many of the claimed services were never provided, and that Garnes routinely billed for more than 24 hours of therapy services in a single day. In one instance, she allegedly provided 69 hours of individual therapy services in a single day in December 2009. The evidence also showed that Garnes purchased a Mercedes vehicle and underwent plastic surgery with the fraud proceeds.
Garnes was convicted on all 12 counts charged in the indictment, including defrauding Medicaid, obstructing an official proceeding, and making false statements in connection with a healthcare matter. She faces a statutory maximum sentence of 10 years in prison and a $250,000 fine for count one, and a statutory maximum sentence of 20 years in prison and a $250,000 fine for count two.
Garnes has been released on bond and is awaiting sentencing. Her co-conspirators, Teresa Marible and Michele Jackson, were previously sentenced to 36 months and 15 months in prison, respectively, and were ordered to pay $1,135,662 and $292,282 in restitution.
The investigation was handled by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the North Carolina Medicaid Investigations Division (MID). The U.S. Attorney’s office for the Western District of North Carolina, led by U.S. Attorney Anne M. Tompkins, prosecuted the case.
Garnes’ conviction serves as a reminder of the importance of holding individuals accountable for their actions and the devastating consequences of Medicaid fraud. The Grimy Times will continue to follow this case and provide updates on Garnes’ sentencing.
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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