Former Operator of Durham Mental Health Provider Pleads Guilty to Medicaid Fraud

9/10/18

By Myah Ward, NC Biz News

Two individuals associated with a mental health company in Durham pleaded guilty to Medicaid fraud and tax evasion last week, according to the U.S. Department of Justice.

Haydn Thomas, 44, formerly of Durham, pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion.

Catinia Farrington, 44, also formerly of Durham, pleaded guilty to one count of health care fraud conspiracy and one count of tax evasion.

In June 2018, Farrington and Thomas were charged with conspiracy to commit health care fraud, health care fraud, aggravated identity theft and tax evasion.

Thomas was also charged with one count of money laundering.

According to court documents, Farrington owned Durham County Mental Health and Behavioral Health Services LLC in Durham. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid from for services that were never provided to patients, resulting in Medicaid paying approximately $4 million to the company.

During this same time frame, Thomas worked as an office manager for an oral surgeon. Thomas gave Farrington both the name and Medicaid number of the dental patient to use for filing false medical claims, court documents say.

Both also diverted millions of dollars from the company for personal use and evaded income taxes by transferring money to various business bank accounts and paying personal expenses from the business bank accounts.

Farrington’s sentencing hearing is set for Feb. 15, 2019. Farrington faces a statutory maximum sentence of 10 years in prison for conspiracy to commit healthcare fraud and five years for tax evasion.

Thomas’ sentencing hearing is set for Feb. 21, 2019. Thomas faces five years in prison for making a false statement in relation to health care matters and five years for tax evasion.

Both also face a period of supervised release, restitution and monetary penalties.

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