FORT BEND COUNTY, Texas (Covering Katy News) — Federal prosecutors have expanded a Fort Bend County Medicare fraud case with four additional defendants, bringing the total to seven women accused of billing the government more than $100 million for hospice care provided to patients who were not dying.
Grand jury adds charges as investigation into fraudulent hospice billing continues
Hattie Banks, Lydia Obere, Cheryl Brooks and Ena Cowart were indicted by a federal grand jury Oct. 8, according to court records. Each faces charges of health care fraud and two felony conspiracy counts related to the fraud scheme and an alleged kickback operation. Banks, Obere and Brooks also face charges for receiving kickbacks.
New Charges Added
The superseding indictment adds charges against three defendants originally charged in June: Dera Ogudo, Victoria Martinez and Evelyn Shaw. The U.S. Department of Justice initially accused the three women of participating in a years-long scheme that fraudulently billed Medicare for more than $100 million.
Ogudo and Martinez owned multiple hospices and group homes in Fort Bend County, including United Palliative & Hospice Care, Cedar Hospice, Residential Hospice, Real Comfort Care and Elizabeth Gardens, according to the indictment. Court documents describe Martinez as a paper owner who worked for Ogudo.
How the Scheme Worked
The defendants allegedly solicited patient referrals from individuals including Shaw, a discharge planner at a Houston-area psychiatric hospital, according to the indictment. Prosecutors allege patients were not terminally ill and often did not understand the care for which they were approved. Shaw and others received kickbacks for the referrals, and Ogudo allegedly bribed a physician to falsify documents making patients appear eligible for treatment.
Ogudo then submitted bills to the government for treatment her businesses purportedly provided, according to the indictment. From 2019 to 2025, Ogudo allegedly received more than $87 million through the fraudulent billing.
Charges Part of Nationwide Crackdown on Healthcare Fraud
The charges were announced as part of what the Justice Department called the largest health care fraud takedown in U.S. history. The nationwide operation targeted defendants accused of stealing more than $14 billion collectively, with approximately $1.8 billion connected to false claims filed with Medicare, Medicaid and private insurers.
Read our original story on the crackdown.
Ogudo now faces 48 felony counts, including 14 charges of money laundering. The Justice Department previously announced it would seek to forfeit more than $4.5 million in assets connected to her, along with two homes in upscale Richmond subdivisions.
Many Details Still Unknown
The superseding indictment detailing charges against all seven defendants is sealed. The specific role each person allegedly played in the conspiracy remains unclear. The original indictment referenced four unnamed co-conspirators: a physician, a group home owner, a United Palliative & Hospice Care employee and an individual described as a close associate of Ogudo.
State records show none of the four recently charged defendants are licensed physicians.
Banks, Brooks, Cowart and Obere were arrested Oct. 21 and released on bond.
All seven defendants have pleaded not guilty. A trial date is scheduled for 2026.