Tag: Fraud

W.Va. Unit Cites $1.3M of Improper Disability Claims

The West Virginia Attorney General’s Office says its unit targeting Social Security disability fraud helped save nearly $1.3 million in improper claims during the second quarter of this year.

Two investigators and an analyst have been working with the Social Security Administration to review suspicious or questionable disability claims.

The unit reported $2.5 million of improper claims stopped in 2016, its first full year, and $1.9 million in the first quarter of 2017.

Attorney General Patrick Morrisey has asked the Legislature transfer the state’s Medicaid Fraud Control Unit from the state Department of Health and Human Resources to his office.

In October, he said the disability fraud unit began reviewing past claims and payments for fraud and possible referral to county and federal prosecutors.

State Gets Share of Western Union Fraud Settlement

  Attorney General Patrick Morrisey says about 2,300 West Virginia consumers could be eligible for $2.9 million in refunds as part of a settlement involving Western Union.

In a news release, Morrisey says the company has agreed to pay a total of $5 million to 49 states plus the District of Columbia to cover costs and fees. That’s in in addition to a settlement announced earlier in January in which the company said it will pay $586 million to compensate fraud victims who used Western Union to wire money to scam artists.

Morrisey says the schemes involved lottery and contest scams, grandparent scams and tax scams.

Morrisey says consumers must evaluate any unexpected email, phone call or letter requesting payment or personal information.

The settlement with the states requires Western Union to develop an anti-fraud program.

Ex-Legal Aid Clinic Manager in Charleston Guilty of Fraud

The former office manager of a legal aid clinic in Charleston has admitted fraudulently taking $1.5 million over 12 years.

Authorities say Kim Cooper, of St. Albans, oversaw daily operations at the Mountain State Justice office, including bank deposits.

The nonprofit provides civil legal services to low-income West Virginians.

The 55-year-old Cooper pleaded guilty Monday to wire fraud and tax evasion.

Prosecutors say she admitted that she secretly established a separate bank account in the nonprofit’s name, deposited checks for attorneys’ fees, then moved money to a private bank account for personal use starting in 2004.

She could face up to 25 years in prison at sentencing April 20 and has agreed to pay restitution to the extent she can.

Ex-Highway Official Admits to Fraud Conspiracy

A former West Virginia Division of Highways employee has pleaded guilty to wire and tax fraud, admitting he used his position to funnel work to a South Carolina business and received secret payments of almost $200,000.

Bruce Kenney III, of Norfolk, Virginia, was indicted in what prosecutors call a conspiracy from 2008 to 2014 to bypass normal state procedures and steer $1.5 million of inspection work to Dennis Corp. of Columbia.

The 60-year-old Kenney, who pleaded guilty in federal court to two charges, worked in the Traffic Engineering Division.

A plea agreement calls for him to forfeit $197,250. He could face up to 25 years in prison. Prosecutors are recommending less.

Also charged are a former Dennis manager, another contractor and an ex-state employee who went to work for Dennis.

W.Va.'s Attorney General Targets Medicaid Fraud

West Virginia's newly re-elected Attorney General Patrick Morrisey plans to target Medicaid fraud in his second term and ask the Legislature to give his…

West Virginia’s newly re-elected Attorney General Patrick Morrisey plans to target Medicaid fraud in his second term and ask the Legislature to give his office more authority to crack down.

Morrisey, who promises this second term will be his last as the state’s top lawyer, says he’s has had success investigating fraudulent disability claims, saving $1.4 million so far.

He says the state could save millions of dollars in the federal- and state-funded health care program for the poor, where spending has expanded.

The Republican is returning to office after getting 52 percent of the vote in a race against Democrat, state legislator and businessman Doug Reynolds, who got 42 percent.

Under current law, the state’s Medicaid fraud control unit is housed within the Department of Health and Human Resources.

Judge Rules for Insurance Company in Funeral Home Lawsuit

A federal judge has ruled for an insurance company in its case against the operators of a Putnam County funeral home accused of filing false death claims on behalf of pre-need contract customers who weren’t actually dead.

The Charleston Gazette-Mail reports Homesteaders Life Insurance Company was granted default judgment Thursday in its lawsuit against Poca-based Gatens-Harding Funeral Home owners Chad and Billie Harding.

The lawsuit said that the Hardings cashed in on over $1 million worth of pre-need funeral contracts for 111 people who were still alive during an eight-year period.

The Hardings denied the allegations in a filing last year by their attorney Jeff Woods.

The judge cited a “complete lack of interest in defending” the case.

The amount the Hardings will be ordered to pay Homesteaders hasn’t yet been determined.

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