BENTON, Ill. – In a shocking case of corruption, Theresa A. Kelly, 57, a former VA psychologist from Herrin, Illinois, was sentenced to 10 months in prison for submitting false medical documents, obstructing justice, and committing Medicare fraud.
Kelly, a licensed clinical psychologist, was employed by the Marion VA Medical Center. She pleaded guilty in October 2023 to one count of concealing a material fact by trick, scheme or device; three counts of making or using a false writing or document; one count of obstruction of justice, and one count of health care fraud.
According to court documents, between November 2016 and August 2020, Kelly submitted fraudulent medical documentation in the name of real and fake medical providers as part of the approval process for reasonable accommodations and medical leave, including FMLA leave. Kelly admitted to submitting false medical documents with forged signatures of two legitimate medical providers, one of whom is local to the southern Illinois area.
In addition to her submission of fraudulent medical documents, Kelly engaged in a scheme to defraud Medicare and obtain payment for psychiatric services that she did not provide to residents of a Southern Illinois nursing home between May 2016 and January 2018. Kelly billed Medicare for more than 400 claims—worth more than $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 ordered to repay $35,795.94 in restitution to the Centers for Medicare & Medicaid Services as repayment for her fraudulent claims. The sentence sends a clear message that VA employees will be held accountable if involved in fraudulent activities, according to Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office.
“Theresa Kelly’s actions are a betrayal of the trust placed in her as a VA psychologist,” said U.S. Attorney Rachelle Aud Crowe. “Government employees acting to defraud their agencies will be investigated and prosecuted to the fullest extent of the law, and I commend the agencies for their work in bringing this offender to justice.”
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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