HOUSTON – A 48-year-old Katy woman is going to prison for defrauding Medicaid of more than $600,000, according to U.S. Attorney Alamdar S. Hamdani.
Kay Le Farmer pleaded guilty on March 22 and was out on bond until sentencing.
Texas Department of Public Safety
Kay Le Farmer
U.S. District Judge George C. Hanks has now ordered Farmer to serve four-and-a-half years in federal prison, followed immediately by two years of supervised release.
At the hearing, the court heard how Farmer fraudulently obtained information of more than 300 patients and her attempts to lie and cover up her crimes. Prosecutors also said she appeared to seek more employment opportunities to steal more information.
The judge noted Farmer’s “cunning and calculated” actions. She emphasized Farmer’s “greed and selfishness” and said she manipulated everyone around her.
Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.
In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.
In total, from 2013 until 2018, Farmer submitted, or caused the submission of, approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid about $432,924.69 on those claims.
The Texas Health and Human Services - Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services - OIG conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson prosecuted the case.