News Summary
In a significant crackdown on health care fraud, 324 individuals have been charged nationwide, including residents from South Carolina. This operation, led by the DOJ, has unveiled schemes resulting in over $14.6 billion in false billings. Key cases involve charges against Tina Marie Armstrong for committing fraud via false Medicare claims and Dee Alice Moton for billing the Veterans Administration for non-existent services. Numerous arrests have been made in North and South Carolina, highlighting the severity of the issue and the government’s commitment to combating health care fraud.
South Carolina residents are among 324 individuals charged in a historic national health care fraud takedown led by the Department of Justice (DOJ). This operation aims to combat alleged schemes that defraud American health care systems, resulting in over $14.6 billion in false billings and the illegal diversion of controlled substances.
Tina Marie Armstrong, a 67-year-old from Florence, has been charged with health care fraud and aggravated identity theft. Her company, Safe at Home Medical Equipment and Supplies, LLC, allegedly submitted false claims to Medicare and Medicaid for durable medical equipment that was either not in service, never delivered, or unauthorized. The faulty claims amounted to $198,981.55, with $104,577.74 already paid out by Medicare and Medicaid.
In addition, Dee Alice Moton, a 51-year-old from Hephzibah, Georgia, faces charges for health care fraud related to her operation of Flowing Hands Massage Clinical Therapy in Aiken, S.C. Moton is accused of billing the Veterans Administration for services that were never performed, totaling $2,373,147.22 over two years.
These two cases are part of the 2025 National Health Care Fraud Takedown, described by officials as the largest of its kind in history. In total, 324 individuals across the nation have been charged in connection with health care fraud and illegal drug diversion schemes. The operation has also led to the seizure of $245 million in cash.
In North and South Carolina alone, nine people have been arrested for conspiring to defraud Medicaid programs, including activities such as buying and selling Medicaid beneficiary information and submitting claims for nonexistent services. Among those arrested are:
- David Corey Hill, 54, of Concord, charged with conspiracy to commit health care fraud and money laundering.
- Crystal Sherrell Jackson, 39, of Charlotte, charged with health care fraud and money laundering regarding fraudulent psychotherapy services and urine drug testing claims.
- Jacqueline Burgess, 59, of Scranton, charged with medical assistance provider fraud for submitting false timesheets while working for Tender Care Home Health Care.
If convicted, Burgess may face up to three years in prison and a $1,000 fine. This case is being prosecuted by the South Carolina Attorney General’s Office, following a report from Tender Care Home Health Care.
Recent civil enforcement actions have also resulted in settlements and judgments amounting to nearly $5 million concerning allegations under the False Claims Act. In one case, several companies, including Nirvana Hyperbaric Institute and its owner, agreed to pay $200,000 to resolve claims about insufficiently supervised treatments billed to Medicare. Additionally, Steven Osbey, a clinic owner from Kernersville, N.C., settled allegations of improper billing to North Carolina Medicaid for over $4.7 million.
Moreover, the U.S. Attorney’s Office has filed a complaint against Benson I. Ejindu for submitting false claims through a durable medical equipment business. Another entity, LabXperior Corporation and its owner, has agreed to pay $235,000 to settle allegations of unnecessary urine drug testing claims violating the Anti-Kickback Statute.
This large-scale initiative underscores the government’s commitment to tackling health care fraud and protecting the integrity of federal health care programs. While many individuals face serious legal consequences, the broader implications of these fraudulent schemes can severely compromise the quality and accessibility of health care services for American citizens.
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