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Former Owner of Caregiving Service Pleads Guilty to Medicaid Fraud

Friday, 06 13, 2014

Daniel Kemp
Deputy Communications Director
502-696-5659 (office)

Attorney General Jack Conway and his Office of Medicaid Fraud and Abuse Control today announced that the former owner and operator of an in-home caregiving service has pleaded guilty to engaging in or devising a scheme to defraud the Kentucky Medicaid program.  Sheryl Bruner, 51, entered the plea this morning in Fayette Circuit Court.  Bruner chose to waive her right to a grand jury indictment and was instead charged by a single-count criminal information. 

 

Bruner was the owner and operator of Support Source, Inc., which had an office in Lexington and was also managed by Bruner from her Nicholasville home.  Support Source purportedly provided in-home care to disabled patients via Medicaid-funded waiver services.  After Support Source’s Medicaid funding was suspended by the Cabinet for Health and Family Services in 2011 following an investigation by the Office of the Inspector General, Bruner continued her scheme by retaining many of her patients and transferring them to a different company based in Lee County.  

 

In pleading guilty, Bruner admitted that from June 2009 through Dec. 5, 2013, she caused her patients to be qualified for Medicaid programs by submitting forged documents.  Bruner then billed Medicaid for services to patients who had not been properly qualified as being Medicaid-eligible. 

 

Bruner agreed to an 18-month prison sentence, to pay $550,000 in restitution, and to forfeit $223,028 in cash to the Commonwealth.  The cash was previously seized by Medicaid Fraud Unit investigators during a search of Bruner’s Nicholasville home in December 2013.

 

“I appreciate the hard work of my Medicaid fraud investigators and prosecutors who successfully handled this case,” General Conway said.  “With this plea, we are able to recover money for a vital state program and Kentucky taxpayers. My office will not relent on our obligation to hold accountable health care providers who participate in this type of deceptive behavior.”

 

This case was investigated by General Conway’s Office of Medicaid Fraud and Abuse Control and the Cabinet for Health and Family Services’ Office of the Inspector General.  Bruner is scheduled to be sentenced on Aug. 15 in Fayette Circuit Court.

 

Prior to her guilty plea on the state Medicaid fraud charge, Bruner was already incarcerated in the Fayette County Detention Center after a jury convicted her in federal court on charges of bankruptcy fraud, Social Security fraud and money laundering.

 

Medicaid Recoveries

Since Attorney General Conway took office in January 2008, his Office of Medicaid Fraud and Abuse Control has recovered or been awarded more than $260 million dollars for the state and federal Medicaid programs. These cases range from lawsuits and settlements against pharmaceutical companies to cases against individual providers.

 

In 2013, General Conway’s Medicaid Fraud Unit was named one of the most aggressive in the country by the nonprofit watchdog group Public Citizen.

The Attorney General’s tip line for reporting allegations of Medicaid fraud is 1-877-228-7384.

 

You can follow Attorney General Conway on Twitter @kyoag, visit the Attorney General’s Facebook page or view videos on our YouTube channel