KC Man Pleads Guilty to $2.6 Million Health Care Fraud

 

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to submitting more than $2.6 million in health care claims, although he was excluded from participating in any federal health care programs after being convicted of a felony drug charge.

Paul Schleicher, 40, of Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to a federal information that charges him with nine counts of making false statements relating to health care matters.

Schleicher formed Health Care at Home to provide health care services and submitted 14,807 claims to Medicare, Missouri Medicaid, Federal Employees Health Benefits Program and TRICARE (the health care program serving uniformed service members, retirees and their families) from June 19, 2008, to Oct. 5, 2012. All claims were for health care services that were provided after Schleicher was excluded from participating in any federal health care programs.

On May 30, 2008, Schleicher was excluded for a period of five years from all federal health care programs due to his felony conviction for conspiracy to manufacture and distribute a controlled substance (gamma hydroxybutyric acid, or GHB). Because of his interest and involvement in Health Care at Home and his failure to disclose this interest, Schleicher made false and fraudulent statements.

The total billed amount was $2,643,693 and the total amount actually paid was $974,762. Under the terms of today’s plea agreement, Schleicher must pay $974,762 in restitution.

Under federal statutes, Schleicher is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 on each of the nine counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by Health and Human Services – Office of Inspector General, Office of Investigations; the Centers for Medicaid and Medicare Services; the U.S. Department of Defense – Office of Inspector General, Defense Criminal Investigative Service; and the U.S. Office of Personnel Management – Office of Inspector General.