Las Vegas Woman Pleads Guilty to Health Care Fraud

LAS VEGAS -- Two women, including one from Las Vegas, pleaded guilty to federal health care fraud and money laundering charges for defrauding the Nevada Medicaid program of roughly $1 million, Nevada's U.S. Attorney Daniel Bogden said Thursday.

Susan Hill, 65, of Las Vegas, and Cassandra Little, 48, of Reno, pleaded guilty on Wednesday before U.S. District Judge Howard McKibben in Reno. Hill pleaded guilty to one count of health care fraud and one count of money laundering. Little pleaded guilty to 28 counts of health care fraud and 10 counts of money laundering.

"The U.S. Attorney's Office and U.S. Department of Justice will vigorously prosecute persons who cheat and steal from federally-funded programs," Bogden said. "Everyone suffers when programs designed to help persons in need are defrauded."

Nevada Attorney General Catherine Cortez Masto also said her office will ensure that justice is served.

Hill and Little face up to 10 years in prison and $250,000 in fines on the health care fraud charges and up to 20 years in prison and $500,000 in fines on the money laundering charges. They are scheduled to be sentenced on July 23 in Reno.

According to court records, Hill and Little defrauded the Nevada Medicaid program of roughly $1 million from January 2007 through January 2011 by fraudulently billing for expensive therapy-related services such as psychosocial rehabilitation and basic skills training that were never provided. To execute their scheme, Hill and Little formed Hill/Little LLC, and entered into a contract with Nevada Medicaid to provide health care services to children who were eligible for Medicaid.

Hill served as the company president. Little, a licensed social worker, was to provide the clinical services to the children. Hill and Little then created a program to obtain aid for the parents of the children who were eligible to receive the Medicaid funding. But the program was not authorized under their Medicaid contract with the state.

Hill recruited parents and guardians to provide services to their own children following minimal training from the company. The company then billed Medicaid $8,000 per month for each child, using a billing code that was only authorized for services that could have been provided by Little, the licensed social worker. 

The company kept $5,000 per month for each child and paid each parent/guardian roughly $3,000. 

The case was investigated by the Nevada Medicaid Fraud Control Unit, Nevada Attorney General's Office, and IRS Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Ronald Rachow and Senior Deputy Attorney General Andrew Schulke.


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