Assisted living owner, three managers charged with defrauding Medicaid of more than $1 million

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Assisted living owner, three managers charged with defrauding Medicaid of more than $1 million
Assisted living owner, three managers charged with defrauding Medicaid of more than $1 million

The owner and three managers of an Alaska assisted living home have been indicted after the home allegedly billed the state for more than $1 million in home- and community-based services that were not rendered as required under residents' plans of care.

Margaret Williams, owner of Flamingo Eye LLC Assisted Living Home in Anchorage, and managers Donald Kallon and Princess Turay each were indicted March 8 on three felony counts of medical assistance fraud, one count of scheme to defraud and one count of evidence tampering. Manager Wilson Esapa was indicted on a single count of evidence tampering. Additionally, all four were alleged to have committed several misdemeanor offenses for knowingly falsifying medical records.

Williams did not return a message left for her by McKnight's Senior Living seeking comment.

Since 2012, according to the Alaska Department of Law, Williams and the others billed the state's Medicaid program more than $8 million for home- and community-based services under a waiver. More than $1.1 million of the services were billed at the higher rate for one-on-one services when, in reality, the services were provided in a group setting or were not provided at all, the law department said.

The charges of medical assistance fraud and scheme to defraud carry a possible sentence of up to 10 years in prison, a fine of up to $100,000 and restitution to the state Medicaid program for Williams and the others, as well as a fine of up to $2.5 million for Flamingo Eye.

The evidence-tampering charge carries a possible sentence of up to 5 years in prison, a $50,000 fine and restitution to the state Medicaid program for the individuals as well as a fine of up to $2.5 million for Flamingo Eye.

The misdemeanor medical assistance fraud offenses carry a possible sentence of up to 30 days in jail, a fine of up to $25,000 and restitution to the Alaska Medicaid program for the four as well as a possible fine of up to $500,000 for Flamingo Eye.

Another assisted living home owned by Williams, Eye to Eye Assisted Living Home, made the news in late 2015 when a 25-year-old resident called the Anchorage Police Department to report that he had “strangled, kicked and punched” to death his caregiver. Gilbert Nashookpuk later pleaded guilty to first-degree murder in the death of Glenna Wyllie. The Alaska Department of Labor and Workforce Development subsequently cited and fined the facility $75,000 for not providing a safe workplace and for not notifying the department's Alaska Occupational Safety and Health section of Wyllie's death within eight hours.

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