Owner of Former Springfield Medical Supply Business Sentenced to Two Years in Prison for Medicaid Fraud

SPRINGFIELD, Ill. – A former Springfield, Ill., man whose business supplied incontinence products to Medicaid recipients, Kevin W. Schaul, was sentenced today for defrauding Illinois’ Medicaid program. U.S. District Judge Sue E. Myerscough ordered that Schaul, 53, currently of Augusta, Mo., serve 24 months in federal prison and pay restitution in the amount of $582,844. Schaul’s prison term will be followed by a three-year term of supervised release, with the first six months as home confinement. Schaul was ordered to report to serve his prison term on a date to be determined by the federal Bureau of Prisons.

On Aug. 30, 2018, Schaul pleaded guilty to five counts of health care fraud related to his business, Childrite Medical Supply, Inc., which he operated from a residence at 201 N. Natchez Trace, in Springfield, Ill. Childrite supplied incontinence products, such as diapers, pull-ups and underpads, to Medicaid recipients, specifically to special-needs adults and children. Medicaid paid Childrite approximately $2.3 million based on submitted claims. The Childrite corporation was involuntarily dissolved in October 2014.

Schaul admitted that from August 2009 through at least September 2013, he repeatedly submitted and caused false claims to be submitted to the Illinois Department of Healthcare and Family Services for delivery of incontinence products. The false claims represented that products had been delivered to Medicaid recipients when no products were delivered or were not delivered in the amount claimed. Schaul used the fraudulent Medicaid payments for his personal use, including for clothing, food, entertainment, fuel, travel, mortgage payments and payments to a family member.

The charges were investigated by the Illinois State Police Medicaid Fraud Control Bureau and the U.S. Department of Health and Human Services, Office of Inspector General. The Illinois Department of Healthcare and Family Services, Office of Inspector General provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass prosecuted the case.