Health care fraud, Wisconsin woman indicted in $1.4M scheme
Federal Courthouse in downtown Milwaukee
MILWAUKEE - A grand jury indicted a Wisconsin woman in connection to a $1.4 million health care fraud scheme, prosecutors announced on Thursday.
According to the U.S. Attorney's Office, 47-year-old Lori Butts of Wales defrauded Wisconsin Medicaid and the Centers for Medicare and Medicaid Services. She is charged with eight counts of health care fraud and eight counts of wire fraud.
The indictment alleges that, through her company, Butts billed for staffing at adult family homes that was not provided. Her company allegedly received $1.4 million in funds to which it was not entitled, and the indictment states a "substantial portion" of the money was used for Butts' personal use.
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Butts' indictment is part of the U.S. Department of Justice's 2024 National Health Care Fraud Enforcement Action – a two-week effort that resulted in criminal charges against 193 defendants who allegedly participated in health care fraud and opioid abuse schemes. Those cases resulted in more than $2.75 billion in alleged false billings.
If convicted, the attorney's office said Butts faces up to 10 years in prison for each health care fraud count and up to 20 years in prison for each wire fraud count. She also faces a fine of up to $250,000 for each count.