Richmond Marketing Company Owner Sentenced to 37 Months for Conspiring to Receive Health Care Kickbacks

RICHMOND, VA—Lorie Monroe, 51, of Richmond, Virginia, was sentenced today to 37 months in prison, followed by three years of supervised release, for conspiracy to receive health care kickbacks, in violation of Title 18, United States Code, Section 371. In addition, Monroe was ordered to pay $545,410 in restitution to the Virginia Department of Medical Assistance Services.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Kenneth T. Cuccinelli, Attorney General of Virginia, made the announcement after sentencing by United States District Judge Henry E. Hudson. On January 24, 2012, Monroe waived indictment and pled guilty to a one-count Information alleging conspiracy to receive health care kickbacks.

According to court documents, Monroe was the owner and operator of Creed Xtreme Marketing Concepts, a.k.a Creed Extreme Marketing (“Creed”), a company located in Glen Allen, Virginia. Sometime prior to December 2008, Monroe and “Individual A” agreed that Creed would serve as a marketing company for “Company 1.” Company 1 was an IIH provider located in the Eastern District of Virginia that was licensed through the Commonwealth of Virginia and under contract with Medicaid to provide Intensive In-Home (IIH) Therapy services. IIH services are designed to assist those youth and adolescents who are at risk of being removed from their homes or are being returned to their homes after removal because of a significant mental health, behavioral, or emotional issues. Monroe and Individual A verbally agreed that Monroe would receive approximately half of the Medicaid payments for each child Monroe referred to Company 1 for IIH services.

On or about December 2008, Monroe hired two employees to canvass low income areas, specifically, Section 8 housing and subsidized housing projects in the greater Richmond and Petersburg, Virginia areas, to find children who were Medicaid beneficiaries to refer to Company 1. Company 1 contacted the individuals recruited by Creed. Company 1 then 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 1 paid Monroe a total of $545,410 in kickbacks for recruiting beneficiaries for IIH services.

The case was investigated by the Federal Bureau of Investigation and the Virginia Attorney General’s Medicaid Fraud Control Unit. It is being prosecuted by Special Assistant United States Attorney Joseph E.H. Atkinson and Assistant United States Attorney Jessica Aber Brumberg. A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.