Three women charged in alleged Medicaid fraud scheme involving Pueblo prison inmate
Three women have been charged with several felonies in a suspected Medicaid fraud scheme in which they allegedly claimed one of them provided home healthcare services to the others while she was incarcerated in a Pueblo-area prison, the Colorado Attorney General's Office announced Monday.
"Not only does taking advantage of the state’s Medicaid system place the vital services it provides at risk, but such a theft can threaten trust of healthcare providers,” Attorney General Phil Weiser said in a news release. “We will continue to hold accountable those who exploit our Medicaid system.”
All three suspects are charged with violation of the Colorado Organized Crime Control Act, a class 2 felony; money laundering, a class 3 felony; conspiracy to commit money laundering, a class 4 felony; theft, a class 3 felony; conspiracy to commit theft, a class 4 felony; forgery, a class 5 felony; and conspiracy to commit forgery, a class 6 felony.
An investigation by the Medicaid Fraud Control Unit in the Colorado Department of Law allegedly found that on or between Aug. 1, 2020, and June 6, 2022, Stephanie Hudgins, 50, Quinetta Hunter, 40, and Bobby Hunter, 68, filed claims and received Medicaid reimbursement for home care services that did not occur.
Hudgins and Bobby Hunter, according to the AG's office, claimed that Quinetta Hunter provided care for them when she was, and remains, in the custody of the Colorado Department of Corrections at the La Vista Correctional Facility in Pueblo.
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According to the arrest warrant and affidavit filed in Denver District Court, Quinetta Hunter was formerly on the payroll of a Northglenn-based home care business that provided Medicaid-funded home services to eligible recipients.
The state attorney general's investigation alleges that all three women worked together to submit falsified work timesheets and cash checks under Quinetta Hunter’s name, and then pocketed the money paid by the business out of Colorado Medicaid funds. The total value of the alleged theft was more than $134,000.
The investigation began when an investigator for the Colorado Department of Labor and Employment was reviewing Department of Corrections calls to and from Quinetta Hunter, who is currently incarcerated for a 2015 violation of the Colorado Organized Crime Act, according to the affidavit.
The investigator allegedly discovered evidence that Hudgins and Quinetta Hunter were conspiring to defraud Colorado's Medicaid program through recordings of the phone calls. The calls were reviewed and evidence was confirmed by an investigator with the attorney general's office.
In an interview with an investigator, Hudgins allegedly admitted to being aware of and complicit in the scam.
After allegedly admitting to being a part of the scheme and using a Wells Fargo Bank account to deposit the funds, the AG's office said in its affidavit she began crying, saying, "This is closure for me."
Checks were also cashed at Money Tree, Hudgins allegedly told investigators. Several checks from the Northglenn-based business were confirmed to have been cashed by a representative from Money Tree.
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Each two-week pay period, Hudgins would allegedly deposit the checks, each for $1,395, in person at the bank using a savings account. Hudgins would then withdraw $695 from ATMs.
When questioned about the pattern of "structured transactions," Hudgins stated that's how she'd always done her banking because it was "convenient." In the affidavit, an investigator opined that Hudgins withdrew money from the ATM to avoid suspicion by banking staff.
The owner of the home care business stated that while he had asked Quinetta Hunter to come into the office and complete paperwork several times, she always made excuses and never came into the office.
The owner stated he had never met her personally and was unaware she was incarcerated. He stated Quinetta Hunter frequently "forgot" to file her time card and refused to use an app that would track her hours. The app also had GPS features, according to the business owner, which may have given away the scheme.
Bobby Hunter, Quinetta Hunter's mother, also allegedly admitted to signing timesheets that falsely claimed Quinetta provided care for her under the home health business while she was incarcerated and unable to do so, according to the affidavit.
The money collected through the alleged scheme was used to finance several vehicles, pay car insurance, and buy clothes, food, and travel, Bobby Hunter told an investigator.
All suspects are innocent until proven guilty in court. Arrests and charges are merely accusations by law enforcement until, and unless, a suspect is convicted of a crime.
Questions, comments, or story tips? Contact Justin at jreutterma@gannett.com. Follow him on Twitter @jayreutter1.
This article originally appeared on The Pueblo Chieftain: Three women charged in Medicaid fraud scheme involving Pueblo inmate
