AG Brown Arrests Former Healthcare Clinic Manager for $2.2 Million Medi-Cal Fraud
Attorney General Edmund G. Brown Jr. has filed criminal charges against the former manager of a Mount Shasta-based medical clinic who filed "bogus claims" under Medi-Cal for medical services that were never performed.
Denise Fairhurst, of Redding, was arrested Wednesday on five criminal counts of grand theft, insurance fraud and submitting false claims to the government. She is being held on $1 million dollar bail.
"Fairhurst ran a health clinic that was losing money and in danger of closing because of widespread financial mismanagement," Brown said. "To keep her operation afloat, she submitted bogus claims to Medi-Cal and in the process violated California law."
Brown's complaint, alleges that between January 2004 and December 2007, Fairhurst, billed Medi-Cal $2.2 million for services not rendered to beneficiaries to help pay operation and management. In addition, Fairhurst used $33,492 of the funds to pay personal credit card bills. If convicted, Fairhurst faces up to five years in state prison.
