Kelly Stutzman, Medicaid and Insurance Fraud, Connecticut 2019

Kelly Stutzman, a private behavioral health clinician, has been caught in a web of deceit, paying over $234,000 to settle allegations of Medicaid and insurance fraud in Connecticut. The 2019 scheme, uncovered by federal and state investigators, saw Stutzman and her business, K-Assist, LLC, submit fraudulent claims to the Connecticut Medical Assistance Program (CMAP) for psychotherapy services.

According to the investigation, Stutzman falsely represented that a licensed provider had rendered the services when, in fact, an unlicensed individual had provided them. This blatant disregard for the law has landed Stutzman in hot water, with the government alleging that she and her business had violated the federal and state False Claims Acts.

Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $13,085 to $27,018 for each false claim. In this case, Stutzman and K-Assist agreed to pay $234,064.89 in order to reimburse the Medicaid program for their wrongdoing.

This is not Stutzman’s first brush with the law. In a separate state criminal proceeding, she pleaded nolo contendre to health insurance fraud, agreeing to pay $63,764.23 in restitution and face a three-year suspended jail sentence and five-year conditional discharge.

The investigation into this case was a joint effort between the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and the Connecticut Office of the Attorney General, with support from the Connecticut Department of Social Services.

Assistant U.S. Attorney Anne Thidemann and Assistant Attorney General Joshua L. Jackson handled the case. If you suspect healthcare fraud, report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.

Kelly Stutzman’s actions have left a trail of deceit and financial destruction in their wake. Her actions serve as a stark reminder of the importance of holding individuals accountable for their crimes and the need for vigilance in the pursuit of justice.

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