Va. business owner spent $2.8 million in Medicaid funds on travel, casinos, designer clothes

RICHMOND, Va. (WWBT) – A Texas woman was sentenced to more than four years in prison after defrauding the Virginia Medicaid system out of $2.8 million dollars, according to the U.S. Department of Justice.

Between 2011 and 2018, prosecutors say Katrina Lynch used funds for spending sprees at casinos, luxury retail store and foreign travel.

The 39-year-old woman owned and operated Tender Heart, LLC, a Midlothian-based company that ensures Medicaid recipients receive needed services.

According to a release from the Department of Justice, Lynch routinely submitted bills to Medicaid for services that her company never provided. For example, Lynch submitted bills to Medicaid for services supposedly provided to Medicaid recipients that had died. Due to fraudulent submissions, Medicaid incorrectly paid Lynch at least $2,816,633.

Officials say Lynch used the fraudulent funds for extensive overseas travel, restaurants, gambling, cosmetic surgery, jewelry and…

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