Attorney General Todd Rokita oversees eight investigations leading to charges as part of nationwide healthcare fraud takedown

Thursday, June 29, 2023 at 10:46 AM

Investigations are part of a nationwide initiative

Attorney General Todd Rokita today announced that his office has played a key role in a major nationwide enforcement action against doctors, nurses and other licensed medical professionals for alleged participation in health care fraud schemes. The Office of the Attorney General’s Medicaid Fraud Control Unit (MFCU) conducted eight criminal investigations in alleged Medicaid fraud, leading to charges against nine individuals.

“In Indiana, Medicaid benefits are intended to help provide needed medical care for disabled and low-income Hoosiers,” Attorney General Rokita said. “Unfortunately, unscrupulous providers all too often try to divert these resources to serve their own selfish desires. In the process, they scam their fellow taxpayers whose hard-earned money supports these programs. Our team of lawyers and investigators will continue to hold accountable all those who illegally try to defraud the system.”

In the eight cases, the Indiana Attorney General’s MFCU investigated licensed healthcare professionals and medical offices where suspected illegal activity occurred.

In all the mentioned cases, Attorney General Rokita’s attorneys are prosecuting the alleged crimes with assent of the local prosecutors’ offices in the counties where the alleged crimes occurred.

These investigations are part of a nationwide initiative led by the U.S. Department of Justice (DOJ) and the U.S. Department of Health and Human Services (HHS).

Following are summations of cases in which Indiana’s MFCU investigators participated. In each case, the fact that a person has been charged with a crime is merely an accusation, and these persons are presumed innocent until and unless proven guilty. The abbreviations "LPN" and "RN" designate licensed practical nurses and registered nurses, respectively.

In Bartholomew County, LPN Erin McMillan, 44, of Columbus, Indiana, is charged with obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep, or furnish a record — all Level 6 felonies. Among other things, the complaint alleges that video footage was viewed by staff at the facility where McMillan worked showing her removing medications from the narcotic box and then never leaving the area to go administer the medications. Staff also allegedly observed her walking back behind the nurses’ station and putting items into her personal bag. This case is being prosecuted by Deputy Attorney General Grainne Kao of the Indiana MFCU.

In Hancock County, RN Wendy Hahn, 52, of Indianapolis, is charged with obtaining a controlled substance by fraud and furnishing false or fraudulent information — both level 6 felonies. She was also charged with theft as a class A misdemeanor. The complaint alleges that Hahn was arrested in Rush County on different charges, and the arresting officer, in searching her vehicle, found controlled substances packaged for patients. The police relayed that information to the Indiana MFCU, which opened an investigation into the origin of the medication. MFCU Investigator Jack Beckley was able to connect the medication to a Hancock County facility. This case is being prosecuted by Deputy Attorney General Grainne Kao of Indiana MFCU.

In Hendricks County, Heather Heugel, 37, of Plainfield, Indiana, is charged with obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep, or furnish a record — all Level 6 felonies. It is further alleged that in a statement, Heugel stated she did not have an explanation for these errors and had not been making the best decisions. This case is being prosecuted by Deputy Attorney General Grainne Kao of the Indiana MFCU.

In Lake County, Kandice Duke, 43, of Merrillville, Indiana, is charged with two counts of Level 6 Felony Obtaining a Controlled Substance by Fraud/deceit or Subterfuge. Duke is alleged to have stolen narcotic pain medication prescribed for two residents at a Crown Point facility while she was working as an LPN. It is further alleged that during the course of the investigation Duke admitted taking the pills for her personal use. This case is being prosecuted by Deputy Attorney General Maureen O’Donnell of the Indiana MFCU.

In LaPorte County, Traci Lindfors, 50, of Michigan City, Indiana, is charged with obtaining a controlled substance by fraud; furnishing false or fraudulent information; and failure to make, keep, or furnish a record — all Level 6 felonies. The complaint alleges, among other things, that Lindfors withheld medication from residents at the facility where she worked in order to keep the medication for herself. This case is being prosecuted by Deputy Attorney General Grainne Kao of the Indiana MFCU.

In LaPorte County, RN Victoria Lee Bell, 57, of Michigan City, Indiana, is charged with obtaining a controlled substance by fraud and failure to make, keep, or furnish a record — both Level 6 felonies. Among other things, the complaint alleges that Bell admitted to stealing medication. This case is being prosecuted by Deputy Attorney General Grainne Kao of the Indiana MFCU.

In Madison County, RN Melissa Lou Fannin, 43, of Hartford City, Indiana, is charged with obtaining a controlled substance by fraud, furnishing false or fraudulent information, and possession of a narcotic drug — all Level 6 felonies. It is alleged that Fannin, while working at a hospital, dispensed hydromorphone at a rate 155% higher than the next RN in the same unit and was taking controlled substances for her own use. This case is being prosecuted by Deputy Attorney General Grainne Kao of the Indiana MFCU.

In Marshall County, Daniel Tanner, 52, is charged with aiding, inducing, or causing the practice of medicine without a license — a Level 5 felony; issuing invalid prescription for legend drugs by a practitioner—a Level 6 felony; and aiding, inducing, or causing practicing nursing while license suspended or revoked — a Class B misdemeanor. His brother, David Tanner, 55, is charged with practicing medicine without a license — a Level 5 felony — and practicing nursing while license suspended or revoked — a Class B misdemeanor. These charges are in connection with their operation of Concierge Medicine of Marshall County. It is alleged that Daniel Tanner, a nurse practitioner, owned and operated Concierge Medicine and employed his brother David Tanner as a nurse, despite David’s nursing license having been indefinitely suspended since 2005. The case is being prosecuted by Deputy Attorney General Jennifer Anwarzai with Indiana MFCU. This matter was investigated by Indiana MFCU and the Indiana State Police.

Attorney General Rokita expressed gratitude to the investigators and attorneys of his Indiana MFCU team for their hard work on these cases.

The Indiana Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a federal grant. The remaining 25 percent is funded by the State of Indiana.