URGENT UPDATE: Seven individuals from the Houston area have been charged in a massive Medicare fraud scheme, allegedly billing over $110 million for hospice care services to patients who were not terminally ill. This alarming news was confirmed by U.S. Attorney Nicholas J. Ganjei following a superseding indictment returned on October 5, 2023.
The accused include Hattie Banks, 49, from Humble; Lydia Obere, 59; and Cheryl Brooks, 64, both from Houston; along with Ena Cowart, 50, from Missouri City. They join Dera Ogudo, 40, and Victoria Martinez, 36, from Richmond, and Evelyn Shaw, 52, from Houston, who were previously arrested in connection with the case.
According to the indictment, the group conspired to defraud Medicare and Medicaid by falsely providing hospice services through their business, United Palliative & Hospice Company (UPHC). Prosecutors allege that Ogudo and Martinez misled elderly patients and their families, convincing them they qualified for hospice care when they did not.
Court documents reveal that UPHC marketers falsely assured beneficiaries of their eligibility, while Ogudo paid kickbacks to individuals who assisted in enrolling patients, including group home owners and Shaw, a hospital discharge coordinator, for patient referrals. Disturbingly, Ogudo is also accused of bribing a doctor to falsely certify patients as terminally ill.
In a bid to evade detection, after agents searched UPHC, Ogudo and Martinez allegedly established new entities, Residential Hospice and Cedar Hospice, using straw owners to continue their operations. They are accused of laundering Medicare payments through accounts controlled by Martinez and others to obscure Ogudo’s involvement.
The charges include conspiracy to commit health care fraud, multiple counts of health care fraud, conspiracy to pay and receive kickbacks, and violations of the Anti-Kickback Statute. Ogudo faces an additional 14 counts related to monetary transactions involving criminal proceeds, while both she and Martinez are charged with conspiracy to commit money laundering, which could lead to a total of 20 years in prison for that offense. Each conviction carries potential fines of up to $250,000.
This shocking case raises urgent concerns about the exploitation of vulnerable populations, particularly the elderly, in healthcare fraud schemes. The impact on the victims and their families is profound, with many losing trust in the healthcare system.
As this investigation unfolds, authorities urge anyone with information on similar fraudulent activities to come forward. Stay tuned for further updates on this developing story.
