North Carolina Department of Justice
North Carolina Department of Justice
North Carolina Department of Justice
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Two Health Care Professionals Plead Guilty To Health Care Fraud and Tax Evasion

Release date: 9/7/2018

(RALEIGH) Attorney General Josh Stein today announced that this week two health care professionals pleaded guilty to felony Medicaid fraud charges and tax evasion. Haydn Thomas, who pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion, and Catinia Farrington, who pleaded guilty yesterday to one count of health care fraud conspiracy and one count of tax evasion, are both formerly of Durham.

“My office will continue to identify, investigate, and prosecute these health care and tax fraud cases to protect taxpayers,” said Attorney General Josh Stein.

Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham. From 2011 to 2015, DCMBHS submitted thousands of false claims and was paid by Medicaid approximately $4 million for mental health services that were not provided. During that same period, Thomas worked as an oral surgeon’s practice manager and provided Farrington with a dental patient’s name and Medicaid number, which was then used by DCMBHS to submit fraudulent claims.

Through these efforts, Farrington and Thomas diverted millions of dollars from DCMBHS for their own use and evaded income taxes.

Farrington is scheduled to be sentenced on February 15, 2019. Thomas is scheduled to be sentenced on February 21, 2019. Farrington faces a statutory maximum sentence of 10 years in prison for conspiracy to commit health care fraud and tax evasion. Thomas faces five years in prison for making a false statement relating to health care matters and/or tax evasion. Farrington and Thomas also face a period of supervised release, restitution, and monetary penalties.

This case is being worked by the North Carolina Department of Justice’s Medicaid Investigations Division, the Internal Revenue Service, the U.S. Department of Health and Human Services, Office of Inspector General, and the United States Attorney’s Office for the Middle District of North Carolina. 
 
About the Medicaid Investigations Division
 
Stein’s MID investigates fraud and abuse by healthcare companies and providers, as well as patient abuse and neglect in facilities that are funded by Medicaid.  Medicaid is a joint federal-state program that helps provide medical care for people with limited income. To date, the MID has recovered more than $500 million in restitution and penalties for North Carolina.

Contact:
Laura Brewer (919) 716-6484
 

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