Department of Finance & Administration
Dave Goetz, Commissioner

FIVE ARRESTED IN WASHINGTON COUNTY TENNCARE FRAUD ROUND UP

NASHVILLE, Tenn. - Five people are charged with TennCare drug fraud in a Washington County investigation.

The Office of Inspector General (OIG), working with the Washington and Unicoi County Sheriff's Offices today announced the arrests:

• Michael White, 27, of Unicoi, charged with one count of TennCare fraud for allegedly using TennCare medical benefits to obtain a prescription for the painkiller oxycontin, concealing the fact that he planned to sell a portion of the prescription.
• Jennifer Hampton, 38, of Unicoi, charged with one count of TennCare fraud. Hampton is accused of replacing prescription painkillers belonging to someone else with another medication. The pills, which were hydrocodone, had also been paid for by the other person's TennCare benefits. The indictment says Hampton planned to sell the drugs.
• Andrew Rice, 23, of Unicoi, charged with one count of TennCare fraud. Rice is accused of filling a prescription at a pharmacy in Johnson City for subutex, a narcotic medication that is similar to morphine, codeine, and heroin. TennCare was used to pay for the drugs, some of which were later sold to an undercover agent.
• April Ferguson, 26, of Jonesborough, charged with one count of TennCare fraud, Ferguson used TennCare to pay for a prescription for suboxone, a narcotic similar to morphine, codeine and heroin that is sometimes used to treat addiction to those drugs. Charges say Ferguson concealed the fact that she planned to sell a portion of the drug.
• Michael J. Payne, 31, of Jonesborough, charged with one count of TennCare fraud. Payne is accused of filling a prescription for the narcotic suboxone, using TennCare to pay for the prescription and concealing the fact he planned to sell a portion of the drug.

"We're extremely grateful to local law enforcement officials who work with us in the war against TennCare fraud," Inspector General Deborah Faulkner said. "By pooling resources with local officials, we are all covering much more ground and making more progress in tackling the drug fraud problem, especially when people try to use public dollars to finance it."

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison. District Attorney General Anthony Clark will be prosecuting.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $2.6 million paid in restitution and recoupment to TennCare, with a total estimated cost avoidance of over $165 million for the TennCare program, according to latest figures. To date, over 920 people have been charged with TennCare fraud.

Through the OIG Cash for Tips Program established by the Legislature, Tennesseans can get cash rewards for TennCare fraud tips that lead to convictions. Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to www.tn.gov/tnoig and follow the prompts that read "Report TennCare Fraud."