United States Attorney Richard B. Roper
Northern District of Texas

OWNER OF COUNSELING SERVICE SENTENCED TO MORE THAN
THREE YEARS IN FEDERAL PRISON, WITHOUT PAROLE,
FOR DEFRAUDING MEDICAID

Defendant also Ordered to Pay More than $250,000 Restitution

DALLAS — Dolores Johnson, a former owner of a counseling services business in Dallas, was sentenced this morning to 37 months in prison by U.S. District Judge Ed Kinkeade, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Johnson, 53, who pled guilty in April to one count of health care fraud, was also ordered to pay $250,591.83 in restitution. Judge Kinkeade ordered that she surrender to the Bureau of Prisons on September 19, 2007.

Johnson owned and operated Gracious Steps Counseling Center and was an approved Texas Medicaid care provider. She admitted that in January 2003 through August 2004, she and others defrauded Medicaid by submitting claims for services allegedly provided to Medicaid beneficiaries through the School Health and Related Services (SHARP) program. Gracious Steps Counseling Center submitted a fraudulent school district affiliation agreement to Medicaid in order to participate in the SHARP program and admits that the counseling services were never provided to the named beneficiaries. Johnson admitted that she, and other participants, caused Medicaid to pay more than $250,591 in fraudulent claims to the Gracious Steps Counseling Center’s business account at Washington Mutual.

In a related case, Tommy Clyde Ransom II, 36, of Dallas, pled guilty earlier this year to one count of health care fraud and in fact, it was the investigation of Tommy Clyde Ransom that led to the criminal charges filed against Dolores Johnson. Ransom also owned and operated a counseling services business in Dallas, called Crossroads Community Outreach Center, and was also an approved Texas Medicaid care provider. Ransom admitted that from March 2002 through May 2004, he and others defrauded Medicaid by submitting fraudulent claims to Medicaid for payment of counseling services allegedly provided to Medicaid beneficiaries through the SHARS program. Ransom’s fraud caused Medicaid to pay $2,084,562 in fraudulently obtained proceeds to his Crossroad’s account at Resource One Credit Union. Ransom was sentenced in May to 112 months in prison and ordered to pay $2,084.562 in restitution.

 U.S. Attorney Roper praised the excellent investigative work of Texas Attorney General Greg Abbott’s Office - Medicaid Fraud Unit and said, “These cases are the culmination of a thorough investigation conducted by General Abbott’s Medicaid Fraud Unit. Our cooperative efforts with the Attorney General’s office are crucial to ferreting out and prosecuting these type of cases.” Roper continued, “These prosecutions should serve as a warning to all who would attempt to defraud our state’s Medicaid system that we will find them and they will pay the price.”

The case was prosecuted by Special Assistant U.S. Attorney Bridget Eyler. The investigation remains ongoing.

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