Herrin VA Psychologist Gets 10 Months for Medicare Fraud and False Docs

A former VA psychologist has been handed a 10-month prison sentence for submitting false medical documents and committing Medicare fraud. Theresa A. Kelly, 57, of Herrin, Illinois, pleaded guilty in October 2023 to charges including concealing a material fact, making false writings, and obstruction of justice.

Kelly was employed as a psychologist at the Marion VA Medical Center, where she submitted fraudulent medical documents in the name of real and fake medical providers to secure unauthorized leave and accommodations. The documents included forged signatures of two legitimate medical providers, one of whom is local to the southern Illinois area.

According to court documents, Kelly’s scheme involved submitting false medical documentation between November 2016 and August 2020. This included approval processes for reasonable accommodations and medical leave, including FMLA leave. Kelly admitted to submitting false medical documents to obtain payment for psychiatric services she did not provide to residents of a Southern Illinois nursing home.

In addition to her full-time job at the VA, Kelly owned a company called TS Onsite Mental Health, through which she claimed to provide psychotherapy sessions to patients at Shawnee Christian Nursing Center in Herrin, Illinois. Kelly billed Medicare for more than 400 claims – worth over $54,000 – for services that she did not provide. Kelly billed for at least some of the services on days she was on approved medical leave from the VA.

Kelly was also ordered to repay $35,795.94 in restitution to the Centers for Medicare & Medicaid Services for her fraudulent claims. The Department of Health and Human Services, Office of Inspector General (HHS-OIG) praised the joint investigation with law enforcement partners, noting that they will continue to work together to protect citizens’ tax dollars from fraud and abuse.

In a separate scheme, Kelly admitted to obstructing justice in a civil proceeding in federal court by submitting fraudulent medical documentation to her attorney. The contents of which were used to seek a continuance of the judicial proceeding. Kelly filed a discrimination complaint in U.S. District Court against the Secretary of Veterans Affairs in April 2020, but instead of proceeding with the case, she submitted the false documents.

U.S. Attorney Rachelle Aud Crowe said that Kelly’s actions were a betrayal of the public’s trust, and that government employees who act to defraud their agencies will be investigated and prosecuted to the fullest extent of the law. Kelly’s sentence sends a clear message that VA employees will be held accountable for their actions.