Huntington store owner guilty in $2M Medicaid fraud, AG says
October 4, 2016
As published by Newsday on October 2, 2016.
The owner of a now-defunct Huntington medical-equipment store has pleaded guilty to submitting more than $2 million of fake orders to Medicaid and using the reimbursements to pay personal expenses such as a time share, a car loan and “numerous” credit-card debts, the office of Attorney General Eric T. Schneiderman announced Friday.
Katia Donnelly, who pleaded guilty to second-degree grand larceny Friday, owned Bennett Surgical Supply Inc. at 382 New York Ave. Using the Medicaid identification numbers of Bennett Surgical customers, Donnelly submitted thousands of false claims to the low-income health program from Jan. 1, 2006, to June 30, 2012, the attorney general’s office said.
The orders included specialty wound dressings, custom orthotics, “high-priced hospital beds” and other items, the office said. Bennett was the highest biller statewide for at least 13 products, the attorney general’s office said.
Donnelly admitted to falsifying hundreds of customer records to make it appear that physicians had ordered the items for their patients, Schneiderman’s office said. She also said she altered legitimate physician orders by adding items that were never requested, nor delivered.
The scheme involved “durable medical equipment and supplies that she had never possessed, that were not medically necessary, that her customers’ medical professionals never ordered, and that her customers in fact never received,” the office said in a news release.
The checks she recorded as payments to suppliers for the inventory were used instead to pay for such things as a time share in the Dominican Republic, which she visited frequently, and numerous credit cards used for travel and online shopping, the office said.
The store closed in May 2012, Schneiderman’s office said. Donnelly was arrested on Aug. 3 and has been held on $500,000 cash bail.
She pleaded guilty in State Supreme Court in Riverhead and faces two to six years in state prison at her Dec. 1 scheduled sentencing date, Schneiderman’s office said.
The New York State Office of the Medicaid Inspector General referred the case to the attorney general’s office.