SIX PEOPLE CHARGED WITH TENNCARE FRAUD

NASHVILLE – Six more people have been charged with TennCare fraud, including a Pickett County woman and her mother, both accused of selling prescription pain medications that had been paid for by TennCare.

Governor Phil Bredesen created the Office of Inspector General, one of the first units of its kind in the nation, in 2004. Since it became operational in February 2005, 240 people have been charged with TennCare fraud, leading to 59 convictions for TennCare fraud and 14 cases resolved.

"We are going to continue to work hard to place charges against anyone we find misusing TennCare,” Inspector General Deborah Y. Faulkner said. “People are getting the message that selling drugs paid for by TennCare, hiding assets to get TennCare benefits, or passing up an employer’s insurance offering to keep TennCare is illegal and won't be tolerated."

The OIG today announced the arrest of:

Bobbie Olivas Alvarado, 31, of Jamestown, is charged with two counts of felony TennCare fraud for selling the painkiller hydrocodone, paid for by TennCare, to an undercover agent of the Pickett County Sheriff’s Office.  She was served at the Tennessee Prison for Women near Nashville, where she is lodged for unrelated offenses.   

Katherine A. Hall, 30, of Cookeville, is charged with one count of TennCare fraud for selling the prescription painkiller oxycodone, paid for by TennCare, to an undercover agent with the Pickett County Sheriff’s Office.

Hall’s mother, Judith A. Gilliam, 58, of Cookeville, is charged with two counts of TennCare fraud for selling the painkiller OxyContin, paid for by TennCare, to an undercover agent.

Loretta U. Johnson, 39, of Byrdstown, charged with one count of TennCare fraud for selling the painkiller hydrocodone, paid for by TennCare, to an undercover agent.

Charles A. Seay, 64 and his wife Barbara J. Seay, 63, both from Clarksville, are each charged with two counts of TennCare fraud and one count of theft of services over $10,000. The couple is accused of getting TennCare benefits by turning down access to private insurance through the wife’s employer, Clarksville/Montgomery County Schools. Possible criminal penalties for the offenses include one to two years imprisonment for TennCare fraud and three to six years imprisonment for theft of services.

Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to www.tennessee.gov/tenncare and follow the prompts that read “Report Fraud Now.”