Longview Medical Supplier Sentenced for Health Care Fraud Scheme

TYLER, TX—A 50-year-old Henderson, Texas woman has been sentenced to federal prison for a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Sheena Shelton pleaded guilty on July 22, 2010, to health care fraud and wire fraud and was sentenced to 18 months in federal prison today by U.S. District Judge Leonard E. Davis. Shelton was also ordered to pay restitution in the amount of $125,000 to Medicare and Medicaid.

According to information presented in court, from 2003 to 2009, Shelton controlled and operated KC Medical Supplies, a durable medical equipment supplier in Longview, Texas. During that time, Shelton devised and carried out a scheme to defraud Medicare and Medicaid by submitting fraudulent claims for equipment and supplies which had not been prescribed or authorized by a physician. Shelton prepared documents that falsely represented that physicians had prescribed or ordered medical equipment for certain beneficiaries although they had not. Shelton forged the signatures of local physicians to fraudulent claim forms before submitting them to Medicare and Medicaid for payment.

Shelton was ordered to report to the U.S. Marshals Service on Aug. 31, 2011 to begin serving her prison sentence.

This case was investigated by the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), the Texas Office of the Attorney General - Medicaid Fraud Control Unit (OAG-MFCU), and the FBI, and was prosecuted by Special Assistant U.S. Attorney Nathaniel C. Kummerfeld.