HOUSTON (Covering Katy News) – A 47-year-old Katy woman admits to defrauding Medicaid of more than $600,000, according to U.S. Attorney Alamdar S. Hamdani. Her admission was part of a plea deal reached Wednesday in Federal Court.
Kay Le Farmer was the office manager for her ex-husband - a therapist and Medicaid provider who operated a practice in West Houston. Following their separation, Farmer admitted to using her ex-husband’s Medicaid provider number to submit fraudulent claims for services that were not provided. Federal investigators say her ex-husband was not aware of the fraudulent claims.
In total, from 2013 until 2018, Farmer was involved in submitting approximately $617,983.86 in claims for psychotherapy services that were not provided. She admitted to being paid about $432,924.69 on those claims.
U.S. District Judge George C. Hanks accepted a plea and will impose sentencing June 20. Farmer faces up to 10 years in federal prison and a possible $250,000 fine.
Farmer is free on bond pending sentencing.
The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.