Haydn Thomas from Durham, NC, pled guilty in federal court to one count of making a false statement relating to health care matters and one count of tax evasion. His business partner Catinia Farrington also pled guilty to one count of health care fraud and one count of tax evasion.
Court documents show that the pair, who owned the Durham County Mental Health and Behavioral Health Services, LLC, submitted false claims to Medicaid for services that were not performed. From 2011 through 2015, they received approximately $4 million from thousands of false claims.
Thomas and Farrington diverted the funds from the company to other business bank accounts and used the money to pay personal expenses. The funds were never reported on their income tax returns.
Sentencing will take place on February 2019. Thomas could face 5 years for making a false statement relating to health care matters and 5 years for tax evasion. Farrington could be sentenced up to 10 years for health care fraud and 5 years for tax evasion. Both also face a period of supervised release, restitution and monetary penalties.