Gibsland woman among 18 defendants indicted in national COVID-19 health care fraud – KTBS

SHREVEPORT, La. – A Bienville Parish woman is among 18 defendants indicted in nine federal districts across the U.S. for their alleged participation in various COVID-19 fraud schemes.

The schemes involved health care services that exploited the pandemic and allegedly resulted in over $490 million in COVID-19 related false billings to federal programs and theft from federally-funded pandemic programs, U.S. Attorney Brandon Brown said Thursday in a news release.

Shaquaila Lewis, also known as Shaquaila Lewis Chatman, 35, of Gibsland,  was charged in the Western District of Louisiana by indictment with wire fraud and money laundering in connection with an alleged scheme to fraudulently obtain over $1.1 million in funds under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The programs offered low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters.

According to the indictment, Lewis, a registered nurse, submitted numerous fraudulent loan applications that contained false statements regarding a purported business and the intended use of the loan funds. The funds were allegedly used for personal expenses, such as gambling and contracting work on her home.

The case is being prosecuted by Assistant Chief Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Seth D. Reeg of the U.S. Attorney’s Office for the Western District of Louisiana

In connection with the enforcement action, the department seized over $16 million in cash and other fraud proceeds. The Center for Program Integrity of the Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions in the last year against an additional 28 medical providers for their alleged involvement in COVID-19 schemes.

“The COVID-19 pandemic brought hardships to many American citizens and those who have chosen to abuse the assistance that was provided is appalling,” said Brown. “We will continue to join with our federal and state and local partners to investigate and prosecute any who may have defrauded the government through these programs that were offered to help people.”

“The Justice Department will not tolerate those who exploited the pandemic for personal gain and stole taxpayer dollars,” said Attorney General Merrick B. Garland. “This unprecedented enforcement action against defendants across the country makes clear that the Department is using every available resource to combat and prevent COVID-19 related fraud and safeguard the integrity of taxpayer-funded programs.”

“Today’s announcement marks the largest-ever coordinated law enforcement action in the United States targeting health care fraud schemes that exploit the COVID-19 pandemic,” said Assistant Attorney General Kenneth A. Polite, Jr. “The Criminal Division’s Health Care Fraud Unit and our partners are committed to putting an end to pandemic-related fraud and holding accountable anyone seeking to profit from a public health emergency.”

The announcement also includes first-of-its-kind charges against suppliers of COVID-19 over-the-counter tests, which Medicare began to cover in April 2022 for beneficiaries who requested the tests. These kits were provided to the public to slow the spread of a deadly disease, but wrongdoers allegedly sought to exploit the program by repeatedly supplying patients, or, in some instances, deceased patients, with dozens of COVID-19 tests that they did not want or need.

Charges were also brought under the Health Care Fraud Unit’s Provider Relief Fund (PRF) Initiative. The PRF is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 that provided financial assistance to medical providers to provide needed medical care to Americans suffering from COVID-19.