URGENT UPDATE: Seven women from the Houston area have been charged in a major Medicare fraud scheme, allegedly billing Medicare and Medicaid for over $110 million in hospice services for patients who were not terminally ill. U.S. Attorney Nicholas J. Ganjei announced the charges following a 43-count indictment returned on October 5, 2023.
The accused include Hattie Banks, 49, of Humble; Lydia Obere, 59; Cheryl Brooks, 64; and Ena Cowart, 50, of Missouri City. They join Dera Ogudo, 40, and Victoria Martinez, 36, both of Richmond, and Evelyn Shaw, 52, of Houston, who were arrested earlier.
This scandal has raised alarms among authorities and could have devastating impacts on the community as it highlights vulnerabilities in the healthcare system. Prosecutors allege that Ogudo and Martinez operated the fraudulent United Palliative & Hospice Company (UPHC), misleading elderly patients and their families about the services being billed to government programs.
According to court documents, marketers for UPHC told beneficiaries they qualified for hospice care, even when they did not. The indictment reveals shocking details, including claims that Ogudo paid kickbacks to individuals who helped enroll patients, and bribed a doctor to falsely certify patients as terminally ill.
“I lost everything,” said a Houston man who fell victim to a related elder fraud scheme, highlighting the emotional toll of such scams.
In a bold attempt to evade detection, Ogudo and Martinez allegedly opened new companies—Residential Hospice and Cedar Hospice—under false ownerships after agents searched UPHC. Prosecutors assert that they laundered Medicare payments through accounts managed by Martinez and others to obscure Ogudo’s involvement.
The charges include conspiracy to commit health care fraud, multiple counts of health care fraud, conspiracy to pay and receive kickbacks, and 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 another count for conspiracy to commit money laundering.
Each count carries severe penalties, with many charges potentially resulting in up to 10 years in prison, while the money laundering conspiracy could extend to 20 years. Additionally, each conviction may incur fines of up to $250,000.
This case underscores the urgent need for vigilance among healthcare beneficiaries, particularly seniors who may be susceptible to fraud. Authorities are urging the public to remain informed about their rights and to report any suspicious activities.
What happens next? The women are expected to appear in court shortly, and as the investigation continues, more details may emerge. Community members are encouraged to stay alert and report any concerns regarding fraudulent healthcare practices.
