KATY, Texas – A 48-year-old Katy woman has been sentenced to years in prison for defrauding Medicaid of more than $600,000, the United States Department of Justice announced Tuesday.
Kay Le Farmer pleaded guilty on March 22.
Farmer was ordered to serve 56 months in federal prison, which will be immediately followed by two years of supervised release.
At the hearing, the court heard how Farmer fraudulently obtained the information of over 300 patients, her alleged attempts to lie and cover up her crimes and how she appeared to be searching for more employment opportunities to steal more information. In handing down the sentence, the court noted Farmer’s “cunning and calculated” actions. U.S. District Judge George C. Hanks reportedly emphasized Farmer’s “greed and selfishness” and said she manipulated everyone around her.
Farmer was the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, investigators said Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.
In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.
In total, from 2013 until 2018, investigators said Farmer submitted or caused the submission of approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid approximately $432,924.69 on those claims.
Farmer was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Health and Human Services - Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services - OIG conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson prosecuted the case.