North Carolina Begins the End of Child Welfare Fraud

It looks like we have the beginnings of federal action to end Medicaid fraud in child welfare.

Owner of Fayetteville childcare centers pleads guilty to fraud

The owner of a chain of Fayetteville childcare centers pleaded guilty Friday to bilking money from government programs.

Sandra Elliot, 47, pleaded guilty before U.S. District Judge Terrence W. Boyle to federal charges of health care fraud and aiding and abetting, according to U.S. Attorney George E.B. Holding's office.

Elliot was charged in December after a joint federal and state investigation into Learning Links Educational Network Services Center Inc., which Elliot opened in 2006.
According to a news release, Learning Links claimed to provide early intervention treatment for children with developmental delays or anger management problems.
The company, which eventually operated three locations in Fayetteville, one in Dunn and had plans to open others, also claimed to provide tutoring for children enrolled at the center.

To pay for the services, Learning Links primarily billed and received payments from Medicaid and Tricare, both of which are government-run benefit programs.
Although the exact amount of money fraudulently received still is being calculated, the release said, Elliot stipulated that the fraud exceeded $1million and forfeited two automobiles, a recreational vehicle and $201,791.

A sentencing date has not been announced. Elliot could face as many as 10 years in federal prison followed by three years of supervised release and a fine of $250,000.
The case was investigated by the Defense Criminal Investigative Service, the North Carolina Department of Justice Medicaid Fraud Investigations Unit, the Tricare Program Integrity Office and the Health Net Federal Services Office of Program Integrity.

A search of Learning Links locations in 2009 allowed law enforcement to confirm that the centers employed non-licensed personnel, provided unwarranted therapy and billed for services not rendered, according to the release.

Investigators said that in some instances, children who allegedly received the services weren't even in the state on the billed date of service.
In other instances, the company billed for services to children several months after the children stopped treatment, and practitioners no longer working for the company still were being listed as the provider of services.

In a 2007 interview with The Fayetteville Observer, Elliot said she had taught in inner-city schools in Washington, D.C., for 12 years. Later, she taught in North Carolina schools and worked in special education programs in Wake, Cumberland and Durham counties, she said.

Tricare is the military equivalent to Medicaid and Medicare.

Thank you North Carolina and U.S. Attorney Office for officially kicking off the national campaign to end Medicaid fraud in child welfare!

Roy Cooper, I love you!