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Man Pleads Guilty To Medicare Fraud

From Raleigh, North Carolina’s local television news station, WRAL:

Mr. Kula runs from WRAL’s camera’s.

Businessman pleads guilty to Medicare fraud

Sep. 8, 2009

Raleigh, N.C. — A Raleigh man who federal investigators say was at the center of an operation that pocketed more than $12 million from false Medicare claims pleaded guilty Tuesday to fraud.

Kalu Kalu pleaded guilty to one count each of conspiracy to commit health care fraud and health care fraud. He will be sentenced Dec. 14, when he faces up to 15 years in prison.

Kalu, his wife, Kecia Kalu, and two others indicted in the case would recruit and train salespeople to establish relationships with Medicare patients to obtain their Medicare numbers and personal information, according to federal investigators.

Investigators allege that the couple used the Medicare provider number of co-defendant Martin Ifeani Iroegbu to submit bogus claims for scooters. The Kalus also are alleged to have used their Raleigh businesses, Enuda Healthsource and Universal Medical Supplies, to bill Medicare for health care aids that were never provided to beneficiaries.

As part of a plea agreement, 15 counts of health care fraud will be dismissed against Kalu Kalu when he is sentenced, defense attorney Paul Sun said.

"Consistent with this plea agreement Mr. Kalu is cooperating fully (with authorities)," Sun said.

Iroegbu has already pleaded guilty to health care fraud and aiding and abetting. He is expected to begin serving a 26-month prison sentence in November.

Kecia Kalu is scheduled for arraignment on Sept. 28.

The fourth defendant in the case is Nnenna K. Cornett, who operates States Medical Products LLC in Raleigh. She faces 16 counts of health care fraud and one count of conspiracy to commit fraud, but it’s unclear whether she has been arrested.

The U.S. Department of Health and Human Services Office of the Inspector General reported in May that more than 10 percent of the $920 million Medicare paid in 2005 for powered wheelchairs had been misspent.

"This goes on all over the country. It’s taking money from the taxpayers," Sun said.

This is just the latest in a series of ongoing reports from WRAL on Medicare/Medicaid scams.

But isn’t it peculiar how these stories of Medicare fraud from local news outlets and seldom make their way into the headlines of our mainstream media?

It’s almost as if our media masters don’t want us to think about such untoward things going on.

Or how the possibilities for fraud will explode once we all are enrolled in Medicare in the name of healthcare reform.

By the way, Mr. Kalu and his accomplices all have Nigerian-sounding names. Though the article omits any mention of their nationality.

This article was posted by Steve on Wednesday, September 9th, 2009. Comments are currently closed.

13 Responses to “Man Pleads Guilty To Medicare Fraud”

  1. BannedbytheTaliban says:

    A headline you should expect to see more often if government run healthcare becomes a reality:

    From WRAL:

    Raleigh man pleads guilty to Medicare fraud

    Raleigh, N.C. — A Raleigh man who federal investigators say was at the center of an operation that pocketed more than $12 million from false Medicare claims pleaded guilty Tuesday to fraud.

    …Kalu, his wife, Kecia Kalu, and two others indicted in the case would recruit and train salespeople to establish relationships with Medicare patients to obtain their Medicare numbers and personal information, according to federal investigators.

    …The U.S. Department of Health and Human Services Office of the Inspector General reported in May that more than 10 percent of the $920 million Medicare paid in 2005 for powered wheelchairs had been misspent.

    http://www.wral.com/news/local/story/5957611/

    If 10% of all Medicare is fraud, that would be over 100 billion of the 1 trillion dollars of the current healthcare legislation. I guess you can call that economic stimulus for the criminal class.

    • proreason says:

      Gotta disagree, Banned.

      Medicare fraud is how liberals payoff their knee breakers and Reverends.

      Expect FEWER headlines about it, even though they intend to greatly increase the number of people covered. They’ll put somebody like Van Jones in charge of the fraud detection division, and in a miraculous stoke of good fortune, he will somehow become a billionare while in offfice.

  2. ilzito guacamolito says:

    ~ It’s almost as if our media masters don’t want us to think about such untoward things going on.
    Or how the possibilities for fraud will explode once we all are enrolled in Medicare in the name of healthcare reform. ~

    Oh, come on! Do you really think that sort of thing could possibly happen with ObamaCare?

    /sarcasm (as if I had to say it)

    The only thing the ‘government’ pays for that works is the military and then only if you let it.

  3. Rusty Shackleford says:

    Kalu, his wife, Kecia Kalu, and two others

    So sad, another fine Irish family torn to ruins.

    (sarc)

  4. GL0120 says:

    It’s axiomatic that if the government is involved, fraud is rampant.
    Remember the $600 toilet seats and hammers?
    The cost was broken down to include how much the secretary who types the invoice was paid.
    Of course, it was never suggested that the secretary was certainly capable of typing a single invoice for multiple hammers or toilet seats.
    The Hubble telescope is another example; what private industry would pay millions of dollars for a product without examining it to determine if there were any manufacturing flaws? Flaws that would prevent the product from performing the very task it was designed to do?

  5. wardmama4 says:

    12 million here, 81 billion there (fraud in auto bailout), illegals send 8 billion back to Mexico (2003 statistic) – what’s it matter at all?

    Let’s see – $89, 012,000,000 would go a damn far distance to cover the 15 million (0.046%) of Americans who really truly do not have health care insurance due to financial reasons (you know the working poor who aren’t covered by SCHIP, Medicaid, Medicare, Public Health Service, Military & VA).

    But like the 22 companies went to court for hiring illegal aliens and did not go to jail (2003), Mr. Kalu – probably won’t go to jail either – want to play guess that _________religion, race, country of origin (talk about a Nigerian scam), Political Party?!?

    What is the word to use when the Government forces business/the criminal justice system to force American citizens to look the other way, endorse the breaking of laws and absorb into their tax burden people who have no legal right what-so-ever to even be in this country and/or violate the law to steal that tax payer funded money? Corruption, Collusion, Extortion, Organized Crime? They all sound good to me.

    • Rusty Shackleford says:

      “Let’s see – $89, 012,000,000 would go a damn far distance to cover the 15 million (0.046%) of Americans who really truly do not have health care insurance due to financial reasons”

      Excellent point WM.

      That’s about $6,000 per uninsured person, or, if thrown into a dedicated fund to allow it to grow and used on a per-case basis, it could (emphasis on ‘could’) be a self-sustaining entity. That is until other vote-mongering democrats saw the money “sitting there doing NOTHING” (a la social security) and used it to pay for more crack whores and fish ladders.

      There is no doubt in my mind that Blammo’s focus is NOT on universal health coverage as so many believe, but in a sales campaign designed with the ulterior motive of spending every possible dime and dollar possible to break the nation financially, and keep it buried in debt.

      If you remove the context “healthcare” and note his complete ignorance on the topic, I have to assume that he’s after something else. That being empty the “unfair wealth holding” of the “rich white people who need to be punished and see what it’s like not to have anything”.

  6. proreason says:

    It isn’t Medicare fraud.

    It’s another form of Income Redistribution.

    So you see, it’s not a crime.

    Oh, maybe if you read “the Law” with squinty eyes you would say it’s a crime.

    But all we know how “flawed” our laws are.

    In cases like this, Social Justice trumps Legal Justice.

    Every once in a while though, we have to throw some innocent victim who gets a little greedier than usual to the bitter clingers, so they can tar and feather the poor suffering descendent of slaves. That calms the fanatical mob down a little bit.

  7. WendyB says:

    Pro, I’m right there with you, except that these are not the descendants of slaves, they’re the descendants of the neighbors that sold the victim class’s ancestors into slavery. In other words, the wily ones.


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