Two Relatives Convicted on Healthcare Fraud Charges

St. Louis, Missouri: Chante Hayes and Gwendolyn Silvers were convicted of multiple fraud charges involving a broad scheme to defraud the Medicaid program, which provides health care services for the indigent, United States Attorney Catherine L. Hanaway announced today.

"Healthcare fraud such as this one diverts the resources of the Medicaid program, designed to serve the indigent, and worthy recipients of this program received care from unqualified and unlicensed providers," said Hanaway. "It is my hope that this successful prosecution deters future wrongdoing and demonstrates to Medicaid's clients that this office will vigorously protect their interest in quality care."

"Healthcare fraud costs U.S. taxpayers billions of dollars, and we will continue to vigorously investigate these crimes," added John Gillies, Special Agent in Charge, FBI, St. Louis.

From 1999 to 2005, Silvers and Hayes worked for Complete Care of American which provided homemaker and personal care services to elderly and disabled clients in their homes. Testimony at trial detailed how Silvers, Hayes, and other family members submitted claims to Medicaid for services that were not provided and directed other employees to sign time sheets indicating that they had provided services when the services had not been provided or the services were provided by some other person.

Over the course of several years through three different home health care agencies, Silvers, Hayes, and numerous family members including Silver's mother, Hayes's mother, Silver's daughter, and a number of cousins received pay for in-home care they did not provide. They also received care they were not eligible to receive. In one case, a family member received care for Medicaid in-home services and received pay for rendering Medicaid in-home services at the same time. The government showed billings for two companies giving care at the same time, for care supposedly given while a patient was hospitalized and for one care giver who was supposedly in two places at once. The scheme resulted in a loss to the government of over $1 million.

Four other co-defendants have pled guilty to related charges, including Jacqueline Hayes, the owner of Complete Care of American and International, Inc. Jacqueline Hayes, the sister of Silvers and mother of Chante Hayes, is scheduled in late March.

Gwendolyn Silvers, 57, St. Louis, and Chante M. Hayes, 29, St. Louis County, were both convicted of one felony count of healthcare fraud; Silvers was also convicted of 12 felony counts of making false statements involving a healthcare benefit program, i.e. Medicaid. In addition to the conspiracy count, Chante Hayes was convicted of one count of making false statements. The seven-day trial was held before United States District Judge Stephen N. Limbaugh.

Each of the 13 counts carries a maximum penalty of five years in prison and/or fines up to $250,000. Sentencings have been set for April 22, 2008.

"Bonnie MacLeod, Special Agent with IRS-Criminal Investigation stated, "To combat healthcare fraud, CI provides financial investigative expertise to multi-agency task forces where we follow the money trail from the crime to the culprit."

Hanaway commended the investigative work on the case by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the Social Security Administration Office of Inspector General. Assistant United States Attorney Dorothy McMurtry and Tom Albus prosecuted the case for the U.S. Attorney's Office.

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