Businesswoman sentenced to four years in $2.8 million health care fraud; money spent on travel, gambling and other personal uses | Crime News
A woman whose business billed the Virginia Medicaid program for more than $2.8 million in work that was not performed, was sentenced to four years and two months in prison Monday.
Katrina Lynch, 40, who had been living in Texas since 2014 and who blamed her conduct in part on a gambling addiction, pleaded guilty to health care fraud in July 2020 and faced up to 20 years in prison when sentenced by U.S. District Judge David J. Novak. Federal sentencing guidelines called for a term of 46 to 57 months.
Prosecutors asked Novak for a 50-month sentence. “Katrina Lynch, over more than six years stole nearly $3 million from Virginia’s Medicaid program, which provides medical assistance to indigent, elderly, and disabled individuals throughout the state,” wrote the U.S. attorney’s office in seeking a 50-month prison term.
The government said she spent over $47,000 at casinos in Las Vegas, New Orleans and elsewhere and $100,000 on clothing and jewelry from stores such as Neiman Marcus, Saks Fifth Avenue, Tiffany & Co. and Louis Vuitton. She spent over $250,000 on travel expenses including a 2018 trip to London and to the Bahamas in 2017.
Other personal expenses were spent on vehicles and cosmetic surgery. “The frivolous manner [Lynch] squandered critical government health care dollars is simply appalling,” wrote prosecutors to Novak. Her conduct impacted Medicaid recipients as well as the Medicaid Program.