HOUSTON – A 47-year-old Katy resident has been indicted for defrauding Medicaid of more than $600,000, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Kay Le Farmer into custody today. She is expected to make her initial appearance before U.S. Magistrate Dena Hanovice Palermo at 1 p.m.
On June 9, a federal grand jury returned the 22-count indictment which was unsealed upon her arrest today.
According to the charges, Farmer is the former office manager for her ex-husband – a therapist and Medicaid provider. Following their separation, Farmer allegedly used her ex-husband’s provider number to submit fraudulent claims to Medicaid for counseling services that were never provided.
From 2013 until 2018, Farmer allegedly submitted or caused the submission of approximately $617,983.86 in claims for psychotherapy services that were not provided. The indictment alleges Farmer was paid approximately $432,924.69 on those claims.
In 2017, Farmer even used her employment at a pediatrician’s office to obtain patient information, according to the allegations. She then allegedly submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.
According to the charges, Medicaid monies were deposited into accounts Farmer controlled.
If convicted, Farmer faces up to 10 years in federal prison and a possible $250,000 maximum fine for each count of health care fraud.
The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services – Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.