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Tuesday, January 14, 2025

North Carolina takes action against alleged Medicaid fraud involving medical supplier

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U.S. Attorney Dena J. King | U.S. Department of Justice

U.S. Attorney Dena J. King | U.S. Department of Justice

The United States and the State of North Carolina have initiated legal proceedings against Benson I. Ejindu, alleging violations of the False Claims Act. The complaint was filed in the United States District Court for the Western District of North Carolina. The allegations suggest that Ejindu knowingly submitted false claims to North Carolina Medicaid by billing for more expensive medical supplies than were actually provided, a practice known as upcoding.

According to the complaint, between May 19, 2017, and August 23, 2019, Ejindu operated a durable medical equipment business under various names and allegedly caused false claims to be submitted to Medicaid. These claims involved high-reimbursing nutritional formulas intended for individuals with rare metabolic disorders when in reality recipients received less costly drinks such as Ensure, PediaSure, Boost, and Glucerna.

U.S. Attorney Dena J. King emphasized the importance of preventing wasteful practices that burden taxpayers and increase healthcare costs: “Durable medical equipment providers that cause the government to pay more than it should for medical equipment and supplies waste taxpayers’ dollars and raise the cost of health care for everyone.”

Special Agent in Charge Kelly Blackmon from the Department of Health and Human Services Office of Inspector General stated their commitment alongside law enforcement partners: “Together with our law enforcement partners, HHS-OIG is dedicated to investigating and addressing improper billing practices submitted to federally funded health care programs.”

North Carolina Attorney General Jeff Jackson also commented on the significance of accountability in safeguarding taxpayer funds: “If businesses try to make an unlawful buck off of taxpayer dollars, we’ll hold them accountable."

The investigation into this matter involved collaboration among multiple agencies including the FBI, HHS-OIG, and North Carolina’s Medicaid Investigations Division. Legal proceedings are being conducted by Special Assistant United States Attorney Matthew R. Petracca from North Carolina’s Attorney General’s Office along with Assistant United States Attorney Holly H. Snow from Charlotte.

It is important to note that these allegations remain unproven until liability is determined through legal processes.

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