Suburban Chicago mental health center managers get prison for $2.5M fraud scheme

The managers of a Matteson, Ill.-based youth counseling center have been sentenced to prison for defrauding the state's Medicaid program of $2.5 million. 

Between 2011 and 2018, Laynie Foundation co-managers Summer Matheson, 46, and Terrence Ewing, 62, fraudulently billed Illinois Medicaid for more mental health counseling services than the foundation actually provided, according to a Sept. 17 Justice Department news release. 

They also used the foundation to seek payment from Medicaid for non-reimbursable activities, such as internal case reviews, staff training, clinical supervision and recordkeeping, according to the release. 

Ms. Matheson allegedly tried to cover up the fraud by directing foundation personnel to backdate and falsify patient records to make it appear that a licensed practitioner had reviewed and approved certain mental health services. She was sentenced to six years in prison. Mr. Ewing was sentenced to four and a half years in prison. Both pleaded guilty to a federal healthcare fraud charge last year. 

Foundation employee Richard Grundy, 39, who also pleaded guilty to a healthcare fraud charge, was previously sentenced to 37 months in prison, according to the release.

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