Woman sentenced to 17 years in federal prison for $3.5 million health care fraud scheme


A woman was sentenced to 17 years in federal prison for her role in an estimated $3.5 million Health Care Fraud scheme.

United States District Judge Alia Moses also ordered 46-year-old DTS Medical Supply Company office manager/medical biller Kathleen Kelly-Tuorila to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.

“The prison terms handed down in this case against three defendants total more than 51 years. These sentences reflect the seriousness of the defendants’ actions and our commitment to hold accountable anyone who would rob, steal, or illegally take without just cause Medicaid and Medicare funds,” stated United States Attorney Richard L. Durbin, Jr.

A federal jury convicted Kelly-Tuorila and DTS Medical Supply owner, 55-year-old Daniel Thomason Smith back in June of 2016, of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.

Prosecutors say evidence presented during the trial revealed that between May 2006 and January 2010, Kelly-Tuorila and Smith conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation fo powered wheelchairs.

"Those who commit Health Care Fraud often harm the most vulnerable in our society by misappropriating limited healthcare dollars intended for the care of the elderly, children and disabled,” said Special Agent in Charge Christopher Combs. “This case demonstrates the FBI's commitment to work with our partners and the public to stop fraud and ensure that limited healthcare funding is used to help those who need it, and not line the pockets of criminals.”

Kelly-Tuorila and Smith have remained in federal custody since the jury verdict in June 2016. Smith was sentenced to 324 months in federal prison on February 23, 2017.

A third defendant in the case, Robin Renee Haigler, was sentenced back in November to 87 months of federal imprisonment.

“Prosecution of these crimes helps deter fraud and holds health care providers accountable when they steal from the American taxpayers,” Attorney General Paxton said. “I commend the hard work of all involved on this case. My office will continue to go after criminals who attempt to steal from programs that help vulnerable Texans.”

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