The owners of a Wichita home health services company have been charged with failing to report $3.4 million in income, federal prosecutors said Thursday.
Betty Lessard, 72, and Gerard Lessard, 66, are charged in an indictment with failing to report income they received from ProActive Home Care.
In a related case, prosecutors said, the director of nursing for ProActive Home Care has been charged with submitting false claims to Medicaid on behalf of individuals who were not receiving home health services.
The indictment said the claims were filed on behalf of people who were homeless, suffering from psychiatric conditions or suffering from chemical dependency.
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Based on such false claims, prosecutors said, ProActive Home Care received more than $23.4 million in Medicaid payments for services purportedly provided to 693 clients.
In 2005 and 2006, the indictment said, ProActive filed claims totaling about $15,000 per client — the highest average in the state. The next highest average was $10,000 per client, prosecutors said.
A call Thursday seeking comment from ProActive Home Care was referred to Gerard Lessard, who did not immediately return a message left for him.
Gary Ayers, a lawyer for ProActive Home Care, later said that the filing of charges would have no impact on the operation of the business or on the services it provides to customers.
The indictment said the Lessards used the undeclared income for personal expenses that included the purchase, lease or restoration of a Rolls Royce, a Bentley, a Porsche and several Mercedes Benzes.
Prosecutors said some of the money went to pay the mortgage on a $2 million home that had a golf hole with two tee boxes.
The indictment said the Lessards underreported their 2002 income by $776,000, their 2003 income by $1.09 million, their 2004 income by $858,000 and their 2005 income by $768,000.
In addition to their regular salaries, the indictment said, checks totaling $378,970 were issued to Betty Lessard and checks totaling $1.296 million were issued to Girard Lessard.
The indictment identified the director of nursing at the business as Caela M. White-Kinchion, 46, of Bel Aire. She was charged with one count of conspiracy to defraud Medicaid and 12 counts of health care fraud.
If convicted, she faces a maximum penalty of five years in prison on the conspiracy charge and a maximum of 10 years on each count of health care fraud.
The Lessards face maximum five- year penalties on charges of tax evasion and conspiracy to evade taxes. They face maximum terms of three years on a charge of filing false income tax returns.