MINNEAPOLIS—Earlier today in federal court, an Apple Valley woman
pleaded guilty to defrauding both her employer and Medica. Lori Jo
Mueller, age 48, pleaded guilty to one count of wire fraud and one count
of health care fraud in connection to the crime. Mueller, who was
charged on January 9, 2013, entered her plea before United States
District Court Judge David S. Doty. In her plea agreement, Mueller
admitted that from June 2006 through June 2012, she embezzled
approximately $840,000 from Edelweiss Home Health Care, using the funds
for her personal use.
Mueller began working for Edelweiss, located in Maple Grove, in 2002,
and was ultimately promoted to the position of vice president of
operations. In that capacity, she was responsible for the review and
payment of corporate invoices, bookkeeping, and other financial matters.
Mueller admitted using her access to the corporate checking account to
issue payments to herself. She also concealed her actions from the
company owners and made misrepresentations concerning the company’s
financial state.
In addition, from March 2010 through June 2012, Mueller defrauded
Medica, a non-profit corporation that provides health insurance products
to individuals and families. She submitted claims to various insurers,
seeking reimbursement for services provided by Edelweiss nursing staff.
In some instances, Mueller double-billed by allowing claims for the same
services to multiple insurance providers. For example, Mueller allowed
both Minnesota Medicaid and Medica to be billed for identical services
provided to one client. The particular double-billing resulted in a
double-payment to Edelweiss, with Medicaid being the proper payer and
Medica being the overpayer. As a result of this criminal behavior,
Mueller caused more than $631,000 in fraudulent proceeds to be paid by
Medica.
For her crimes, Mueller faces a potential maximum penalty of 30 years
in federal prison for wire fraud and 10 years for health care fraud.
Judge Doty will determine her sentence at a future hearing, yet to be
scheduled.
This case is the result of an investigation by the Federal Bureau of
Investigation and the U.S. Department of Health and Human
Services-Office of Inspector General (DHHS-OIG). It is being prosecuted
by Assistant U.S. Attorney David M. Genrich.
The U.S. Attorney’s Office participates in a task force with the
Medicaid Fraud Control Unit at the Minnesota Attorney General’s Office
that focuses on home health care fraud trends. The task force includes
the DHHS-OIG, the FBI, the Internal Revenue Service, and other federal,
state, and local law enforcement partners.
As a result of federal convictions for health care fraud, defendants
are excluded from participating in federal health benefit programs,
including Medicare and Medicaid. Exclusion determinations are made by
the U.S. Department of Health and Human Services. Nationwide, more than
3,000 individuals were excluded from program participation in fiscal
year 2010 based upon criminal convictions or patient abuse or neglect,
license revocations, or other factors.
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