A shocking case of healthcare fraud has rocked the state of North Carolina. Haydn Thomas, 44, formerly of Durham, North Carolina, pleaded guilty to one count of making a false statement relating to healthcare matters and one count of tax evasion on an unknown date.
According to documents and information provided to the court, Thomas worked as the practice manager for an oral surgeon and provided Catinia Farrington with the name and Medicaid number of a dental patient, causing the filing of a false medical claim.
Farrington, 44, also formerly of Durham, North Carolina, pleaded guilty to one count of healthcare fraud conspiracy and one count of tax evasion on an unknown date. Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham and submitted false claims to Medicaid for mental health services that were not performed.
From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid that resulted in Medicaid paying approximately $4 million to DCMBHS. Farrington and Thomas diverted millions of dollars from DCMBHS for their own personal use and evaded income taxes by, among other things, transferring money to various business bank accounts and paying personal expenses from the business bank accounts.
The sentencing hearing for Farrington has been set for February 15, 2019. The sentencing hearing for Thomas has been set for February 21, 2019. Farrington faces a statutory maximum sentence of 10 years in prison for conspiracy to commit healthcare fraud and five years in prison for tax evasion. Thomas faces five years in prison for making a false statement relating to healthcare matters and five years in prison for tax evasion.
Farrington and Thomas also face a period of supervised release, restitution, and monetary penalties. The investigation was conducted by special agents of the Internal Revenue Service, the U.S. Department of Health and Human Service, Office of Inspector General, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID).
Assistant U.S. Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division, and Special Assistant U.S. Attorney Michael Heavner of MID are prosecuting the case. The U.S. Attorney’s Office for the Middle District of North Carolina is handling the prosecution.
Key Facts
- State: North Carolina
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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