UPDATE: Seven individuals from the Houston area have been charged in a significant Medicare fraud scheme that allegedly billed the government for $110 million in hospice care services for patients who were not terminally ill. U.S. Attorney Nicholas J. Ganjei announced the urgent developments following a 43-count superseding indictment issued on October 5, 2023.
Authorities arrested four additional suspects in connection with the scheme, including Hattie Banks, 49, of Humble; Lydia Obere, 59; Cheryl Brooks, 64; and Ena Cowart, 50, of Missouri City. They join Dera Ogudo, 40, Victoria Martinez, 36, both of Richmond, and Evelyn Shaw, 52, of Houston, who were previously taken into custody.
Prosecutors allege that Ogudo and Martinez operated a fraudulent business known as United Palliative & Hospice Company (UPHC). They misled elderly patients and their families about the hospice care being billed to Medicare and Medicaid, falsely claiming that patients qualified for services when they did not. The indictment indicates that Ogudo paid kickbacks to individuals assisting with patient enrollments, including group home operators, and Shaw, a hospital discharge coordinator, for patient referrals.
The indictment reveals shocking details of the alleged fraud. Investigators found that after authorities searched UPHC, Ogudo and Martinez attempted to continue their operations by opening new companies—Residential Hospice and Cedar Hospice—under nominal owners. They reportedly laundered Medicare payments to obscure Ogudo’s involvement in the scheme by using accounts controlled by Martinez and other associates.
The charges against them include conspiracy to commit health care fraud, multiple counts of health care fraud, and conspiracy to pay and receive kickbacks, along with violations of the Anti-Kickback Statute. Ogudo faces an additional 14 counts related to monetary transactions involving criminal proceeds, while both she and Martinez face an added conspiracy charge for money laundering. Many of these counts carry severe penalties, with individual counts potentially resulting in prison sentences of up to 10 years, while the money-laundering conspiracy could lead to 20 years behind bars. Each conviction may also incur fines of up to $250,000.
This extensive case highlights the urgent need for vigilance against fraud in healthcare, particularly concerning vulnerable populations such as the elderly. As investigations continue, the implications of this scheme reveal the profound impact of healthcare fraud on community trust and the integrity of essential services. Authorities urge anyone aware of suspicious activities to report them immediately to help protect seniors from exploitation.
Stay tuned for more updates as this developing story unfolds.
