Grand jury charges two Kentucky behavioral health providers illegally billed Medicaid
Two behavioral health providers in Kentucky submitted fraudulent bills to Medicaid and used ill-gotten money for purchases that included expensive cars and property, a federal grand jury has charged.
The indictment charges April R. Robertson and Jason C. Ocean with multiple counts each of conspiracy to commit health care fraud, health care fraud and money laundering between January 2020 and December 2022.
Robertson operated Grace N Mercy Residence Inc., and Grace N Mercy Support Services, both in Louisville, during the time covered in the indictment.
Ocean, a licensed clinical social worker, operated Ocean Behavioral Health Care LLC, also in Louisville, and provided services for Grace N Mercy, according to the indictment.
Medicaid provides benefits to low-income people and people with disabilities, and covers services from behavioral-health providers that include counseling and drug treatment, according to the indictment.
Robertson and Ocean sometimes provided services to Medicaid members for a short time but kept billing the program for services for them for weeks or months, the indictment charges.
They also allegedly sometimes provided people with temporary shelter, or a promise of shelter, and then fraudulently billed for a longer period under the guise the people were receiving intensive services.
The two allegedly didn't do assessments required for people to get services or fabricated the assessments.
The money-laundering charges relate to money the two allegedly received through improper billing and then used to buy other things.
The two money-laundering charges against Robertson allege that in July 2021, she used $73,900 to buy a Maserati and another $131,000 in February 2022 to buy a property in Louisville.
The two money laundering counts against Ocean allege that in February 2022 he used $36,000 derived from criminal activity to buy a Mercedes-Benz car and another $130,386 to buy a piece of property in Louisville.
Robertson also faces a charge that last July, she transferred a property in Louisville valued at $260,000 out of her name to conceal that she bought it with the proceeds of the conspiracy to commit health care fraud.
The indictment lists a dozen properties in Louisville, one in Kansas City and one in Durham, N.C., some in the name of Robertson and some in Ocean's name, that the government wants to take from them if they are convicted.
It also lists a 2018 Rolls-Royce, a 2016 Mercedes-Benz and a 2022 Bentley Flying Spur V8 — which Car and Driver magazine said had a price beginning at just over $200,000 — the government wants to forfeit from Ocean, as well as a 2021 Maserati, a 2004 Lamborghini Gallardo and a 2019 Cadillac XT4 in Robertson's name.
The forfeiture count also includes a Rolex watch and a Patek Phillippe watch, both luxury items.
The grand jury indicted Robertson and Ocean on Oct. 10 but the charges were sealed until Thursday, when Ocean had his initial court appearance.
Both Ocean and Robertson have pleaded not guilty.
Ocean's attorney, J. Guthrie True, told the Herald-Leader, "We deny the charges and intend to vigorously defend the allegations."
Noah Robert Friend, who represents Robertson, said Thursday that they are reviewing the evidence in the case.
"My client had a passion for helping people with substance abuse issues, and got into this line of work for all the right reasons," Friend said. "We are looking forward to the comprehensive facts of this case becoming public."
Most of the charges in the indictment are punishable by up to 10 years in prison, but one charge against Robertson carries a maximum 20-year sentence.
