La. Mental Health Facility Owner Arrested in Fraud Scam

Louisiana Attorney General Charles Foti, Jr. announced that a joint investigation between the DOJ’s Medicaid Fraud Control Unit (MFCU) and the Department of Health and Hospitals (DHH) resulted in the arrest of two co-owners of the Crossroads Mental Health facility in Plaquemine, La.

MFCU investigators arrested the owner/administrator of Crossroads Mental Health LLC, Jo Lynn Thibodeaux, of Plaquemine. Investigators also arrested the co-owner and clinic manager, Gary Burns of Baton Rouge. Both defendants surrendered themselves to MFCU investigators.

The investigation began on March 29, 2004 and centered on fraudulent billing practices. Specifically, investigators say owner Jo Lynn Thibodeaux billed the Medicaid Program for services not rendered and instructed employees to falsify documents to support the billing of these services. The submission of this false service information resulted in Thibodeaux’s receipt of Medicaid funds to which she is not entitled.

Thibodeaux is charged with 30 counts of Medicaid Fraud, one count of Conspiracy to Commit Medicaid Fraud, one count of Obstruction of Justice, one count of Conspiracy to Commit Obstruction of Justice, one count of Filing False Public Records and one count of Conspiracy to Commit Filing False Public Records between August 2002 and April 2004.

Crossroads co-owner Gary Burns is charged with one count of Conspiracy to Commit Medicaid Fraud, one count of Filing False Public Records, one count of Conspiracy to Commit Filing False Public Records, one count of Obstruction of Justice, and one count of Conspiracy to Commit Obstruction of Justice.

“I would like to congratulate my MFCU unit on a job well done and thank the Department of Health and Hospitals for all of their help. We could not have had such a successful case without their help,” stated Foti.

MFCU investigators estimate that civil damages total approximately $265,000.