Katy woman accused of defrauding Medicaid out of more than $600K using her ex-husband’s therapist information

Kay Le Farmer (Texas Department of Public Safety, Texas Department of Public Safety)

HOUSTON – A 47-year-old Katy resident has been indicted for defrauding Medicaid of more than $600,000, a federal official said Wednesday.

U.S. Attorney Jennifer B. Lowery said authorities took Kay Le Farmer into custody and she is expected to make her initial appearance before U.S. Magistrate Dena Hanovice Palermo at 1 p.m.

On June 9, a federal grand jury returned the 22-count indictment which was unsealed upon her arrest on Wednesday.

According to the charges, Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider. Following their separation, Farmer allegedly used her ex-husband’s provider number to submit fraudulent claims to Medicaid for counseling services that were never provided.

From 2013 until 2018, authorities say Farmer allegedly submitted or caused the submission of approximately $617,983.86 in claims for psychotherapy services that were not provided. The indictment alleges Farmer was paid approximately $432,924.69 on those claims.

In 2017, Farmer even used her employment at a pediatrician’s office to obtain patient information, according to the allegations. She then allegedly submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.

According to the charges, Medicaid monies were deposited into accounts Farmer controlled.

If convicted, Farmer faces up to 10 years in federal prison and a possible $250,000 maximum fine for each count of health care fraud.

The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.


About the Author:

Amanda Cochran is an Edward R. Murrow award-winning journalist. She specializes in Texas features, consumer and business news and local crime coverage.