Therapist’s ex-wife convicted of defrauding Medicaid and stealing patient information

HOUSTON – A 47-year-old Katy resident has admitted to defrauding Medicaid of more than $600,000, announced U.S. Attorney Alamdar S. Hamdani.

Kay Le Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.

In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.

In total, from 2013 until 2018, Farmer submitted, or caused the submission of, approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid approximately $432,924.69 on those claims.

U.S. District Judge George C. Hanks accepted the plea and will impose sentencing June 20. At that hearing, Farmer faces up to 10 years in federal prison and a possible $250,000 fine.

Farmer was permitted to remain on bond pending sentencing.

The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.