April 21, 2011 2:40 PM

http://www.gastongazette.com/news/defrauding-56926-medicaid-money.html

A Mount Holly woman has been indicted on federal charges of money laundering for defrauding Medicaid and using the money to buy vehicles, a house and a vacation time share, according to the U.S. Attorney’s Office.

Erika Holland, 41, was charged Thursday for submitting false claims, bringing in more than $1.4 million that she used for personal purchases, court documents state.

According to the criminal indictment, Holland was the mastermind of a scheme to rake in money from Medicaid by filing false claims.

Holland put the plan into action in 2010 with coconspirators Joanna Patronis, 39, of Cramerton and Giraud Hope, 48, of Charlotte, according to indictments.

Court documents allege that Holland operated Faithful Shephard’s Home Care in Gastonia and was affiliated with Faithful Shephard’s Family Services, Open Arms, Berry Inc. and New Covenant Community Development Center.

Patronis was listed as working with a similar company, A Time for Everything, in Cramerton.

None of the facilities was authorized by Medicaid to provide mental or behavioral health services, but both women sought reimbursement for claims, indictments state.

None of the companies actually provided the services listed in the fraudulent claims, according to a press release from the U.S. Attorney’s Office.

Giraud Hope also submitted claims to Medicaid through Hope and Family Behavioral Resources from August 2009 to present, according to the indictment.

Court documents state that the scheme began in 2010, but that Holland “back billed” claims going back to mid-2009.

The claims listed a licensed clinician along with a provider number for billing purposes, but investigators say that particular doctor (whose name is being withheld in court documents) was never actually associated with any of the fraudulent businesses.

The false claims led Medicaid to pay nearly $1.5 million in reimbursements for the claims.

The indictment alleges that Holland filed the claims between October 2009 and September 2010 then spent the proceeds on numerous vehicles.

Holland also purchased her residence in Mount Holly and a timeshare in Kissimmee, Fla., the indictment sates. These transactions equate to five counts of money launder-ing in the indictment.

The claims misrepresented the company and the therapist, as well as the types of services provided, according to the press release.

During the course of the investigation, the United States Secret Service seized $71,330 in funds, a 2003 Hummer, a 2007 Infiniti, a 2007 BMW and a 2007 Mini Cooper. Federal forfeiture laws authorize the seizure of property when there is probable cause to believe there is health care fraud.

Holland was arrested Thursday. If convicted, she could face a maximum of 10 years in federal prison and a $250,000 fine for each charge.

Patronis pleaded guilty on Monday, April 18, 2011, to a single count of conspiring to commit health care fraud. Patronis agreed to forfeit $2.7 million, including $46,857.57 in funds seized during the course of the investigation, a 2010 Toyota Rav-4, and her residence located in Cramerton.

Hope pleaded guilty on Feb. 9, 2011, to a single count of conspiring to commit health care fraud.

Both Hope and Patronis face a maximum statutory penalty of 10 years of imprisonment and a $250,000.

Sentencing dates for Patronis and Hope have not been set yet.