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United States Attorney's Office
Eastern District of Virginia
United States Attorney Neil H. MacBride
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Richmond marketing company owner sentenced to 37 months in prison for receiving more than $545,000 in Medicaid kickbacks
RICHMOND (June 12, 2012) -- A Richmond marketing company owner was sentenced today to 37 months in prison for conspiring to receive Medicaid kickbacks amounting to more than $545,000. Attorney General Ken Cuccinelli and U.S. Attorney Neil MacBride made the announcement today that Lorie Monroe, 51, of Richmond, was sentenced by Judge Henry E. Hudson of the U.S. District Court for the Eastern District of Virginia to 37 months in prison, followed by three years of supervised release for conspiracy to receive health care kickbacks for recruiting youth Medicaid beneficiaries to an intensive in home (IIH) therapy service provider which claimed to assist youth who are at risk of being removed from their homes, or who are being returned to their homes after removal because of significant mental health, behavioral, or emotional issues. In addition, Monroe was ordered to pay $545,410 in restitution to the Virginia Department of Medical Assistance Services, the state agency charged with overseeing the Medicaid program in Virginia.
Monroe was the owner and operator of Creed Xtreme Marketing Concepts, a company located in Glen Allen. Sometime prior to December 2008, Monroe began a business relationship with an individual and his company that, for legal reasons, cannot be named and will be referred to as "Individual A" and "Company A." Monroe and Individual A agreed that Creed would serve as a marketing company for Company A. Company A was an IIH provider located in Richmond, which was licensed under contract with Medicaid to provide IIH services. Monroe and Individual A verbally agreed that Monroe would receive approximately half of the Medicaid payments for each child she referred to Company A for IIH services.
In December 2008, Monroe hired two employees to canvas low income areas, specifically Section 8 housing and subsidized housing projects in the greater Richmond and Petersburg areas, to find children who were Medicaid beneficiaries to refer to Company A. Company A then contacted the individuals recruited by Creed and enrolled many of these Medicaid-eligible children in its IIH program and billed Medicaid for IIH services rendered. Between December 2008 and January 2010, Company A paid Monroe a total of $545,410 in kickbacks for recruiting beneficiaries for IIH services.
The case was investigated by the Virginia attorney general's Medicaid Fraud Control Unit and the Federal Bureau of Investigation. It was prosecuted by Virginia Assistant Attorney General and Special Assistant United States Attorney Joseph E.H. Atkinson, and Assistant United States Attorney Jessica Aber Brumberg.
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