Psych Crime Reporter

August 13, 2013

Mental health counselor Linda Smoot Radeker defrauded Medicaid of $6.1 million

Filed under: Uncategorized — Psych Crime Reporter @ 4:06 pm

The wife of a former Cleveland County assistant district attorney and judicial candidate was sentenced Thursday to six years in prison.

Linda Smoot Radeker, 72, of Shelby admitted to overseeing a health care scheme that defrauded Medicaid of at least $6.1 million.

In September 2012, Radeker, the wife of Gwynn G. Radeker, pleaded guilty to one count of health care fraud conspiracy and two counts of money laundering. In her plea agreement filed with the court, Radeker admitted that from 2008 to 2011 she obtained at least $6.1 million in fraudulent reimbursement payments from false claims submitted to Medicaid.

Radeker was also sentenced to two years of court supervision and ordered to pay $6,156,674.68 as restitution

According to filed court documents and the sentencing hearing, Radeker, a licensed professional counselor enrolled with North Carolina Medicaid, falsely claimed in billings submitted to Medicaid that she was the attending clinician for services provided to Medicaid recipients, when no such services were provided.

Court records show that Radeker “rented out” her Medicaid provider number to a network of co-conspirators operating in Cleveland and Gaston counties and elsewhere and, in return, kept a percentage of the fraudulent Medicaid reimbursements, sometimes as much as 50 percent.

Rodnisha Sade Cannon of Charlotte and Victoria Brewton of Shelby have also pleaded guilty for their involvement in the scheme.

Court records show that the co-conspirators used primarily the Medicaid numbers of children whose parents thought they were being enrolled in after-school programs in Shelby , Kings Mountain and Bessemer City . These after-school programs were owned and operated by Radeker’s co-conspirators.

According to court documents, Radeker made several large purchases using criminal proceeds, including $21,500 to purchase a 2010 Ford Ranger, and $44,440 to purchase a 2010 Lincoln MKS sport utility vehicle.

Radeker also used Medicaid money to purchase a recreational vehicle and at least $500,000 in jewelry.

In making Thursday’s sentencing announcement, U.S. Attorney Anne M. Tompkins said, “Health care fraud harms all of us — government programs, private insurers, health care providers and individual patients.”

“This is a very serious matter because health care fraud damages everyone,” said Jeannine A. Hammett, special agent in charge, IRS-Criminal Investigation. “Ms. Radeker received money she was not entitled to, and she created false documents to hide the true nature of the funds.”

Source: “Wife of former judicial officials gets 6 years for $6.1 million Medicaid fraud,” Gaston Gazette, August 8, 2013.

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