HOUSTON — Seven individuals from the Houston area face federal charges in a large-scale Medicare fraud case, the U.S. Attorney’s Office for the Southern District of Texas announced.
Authorities arrested Hattie Banks, 49, of Humble; Lydia Obere, 59, and Cheryl Brooks, 64, both of Houston; and Ena Cowart, 50, of Missouri City. Earlier arrests included Dera Ogudo, 40, and Victoria Martinez, 36, of Richmond, and Evelyn Shaw, 52, of Houston.
The indictment, returned on October 5, accuses the group of defrauding Medicare and Medicaid of more than $110 million. Prosecutors allege the defendants billed for hospice services for patients who were not terminally ill. Ogudo and Martinez reportedly managed United Palliative & Hospice Company (UPHC) and misled patients and their families about the services billed to the government.
Court documents state UPHC marketers informed beneficiaries of their supposed eligibility for hospice care, even when they did not qualify. Ogudo allegedly paid kickbacks for patient enrollments, including to group homeowners and other parties, and compensated Shaw, a hospital discharge coordinator, for referrals. Prosecutors also claim Ogudo bribed a doctor to certify patients as terminally ill.
Following searches of UPHC, Ogudo and Martinez allegedly established new companies, Residential Hospice and Cedar Hospice, using straw owners to continue the scheme. Authorities claim they laundered Medicare payments through accounts controlled by Martinez and others to hide Ogudo’s involvement.
Charges include conspiracy to commit health care fraud, multiple counts of health care fraud, conspiracy to pay and receive kickbacks, and violations of the Anti-Kickback Statute. Ogudo faces 14 additional counts related to financial transactions involving illicit proceeds. Both Ogudo and Martinez are charged with conspiracy to commit money laundering. Each count carries potential penalties of up to 10 years in prison, with money laundering penalties reaching up to 20 years, along with fines up to $250,000.
U.S. Attorney Nicholas J. Ganjei said the scheme involved deceit against elderly patients and misused taxpayer funds, placing financial gain above patient well-being.
The investigation involved the FBI, the U.S. Department of Health & Human Services Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit. Authorities emphasized their commitment to prosecuting health care fraud and protecting government-funded programs.