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Business owner sentenced for Medicaid fraud
by Tribune Staff
Jul 03, 2012 | 3595 views | 0 0 comments | 3 3 recommendations | email to a friend | print
Joseph Lewellyn
Joseph Lewellyn
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LAS VEGAS — Nevada Attorney General Catherine Cortez Masto announced Thursday that the owner of a Medicaid facility in Las Vegas who submitted false Medicaid claims has been sentenced to 12-48 months in jail and ordered to pay $200,000 in restitution, penalties and costs.

Joseph Lewellyn, 19, of Las Vegas, was sentenced for two felony offenses of submission of false claims of Medicaid fraud by Clark County District Court Judge James Bixler.  Bixler also sentenced Lewellyn to community service and two years of probation in this Medicaid fraud case. 

“Combating fraud against the Medicaid system is important to preserve money for people that are in need of Medicaid services,” Masto said.  “Prosecution of these crimes helps deter fraud and the restitution penalties enable the return of funds to Medicaid which ensures continued support of those in need of services.”

The investigation began after information was obtained that Lewellyn, the owner of Ocean Adult, Child and Family Services (OACFS), and his employees were not providing services to Medicaid recipients. Through the operation of OACFS, Lewellyn created or directed the creation of false documentation, which indicated services were provided to Medicaid recipients when in fact the services were not provided. 

Interviews with Medicaid recipients and former employees of OACFS showed that Lewellyn and the employees he oversaw were not providing the Behavior Skills Training and Psychosocial Rehabilitation services to Medicaid recipients as indicated on claims submitted to Medicaid. In one instance, claims were submitted for services allegedly provided to a Medicaid recipient when she was incarcerated.

The fraud occurred from October 2010 to March 2011.

Persons convicted of Medicaid fraud may also be administratively excluded from future Medicaid and Medicare participation. 

The case was investigated and prosecuted by the Nevada Attorney General’s Medicaid Fraud Control Unit (MFCU), which investigates and prosecutes financial fraud by those providing healthcare services or goods to Medicaid patients. MFCU also investigates and prosecutes instances of elder abuse or neglect. Anyone wishing to report suspicions regarding any of these concerns may contact the MFCU at 775-684-1191.  
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