Two Winston-Salem Men Plead Guilty to Health Care Fraud

10/19/17

By Addison Lalier, NC BIZ News

Two men from Winston-Salem, North Carolina, have pled guilty to conspiracy to commit over $1 million in healthcare fraud, announced U.S. Attorney W. Stephen Muldrow.

Shawn Thorpe, 30, and Ruben McLain, 46, each face a maximum penalty of five years in prison and a fine up of to $250,000.

Thorpe and McLain created and managed Coastal Bay, a company that provided medical care to Medicaid patients.

According to the plea agreements, McLain was considered an “excluded provider” and was prohibited from billing federal health care programs due to an earlier federal conviction for health care fraud in 2011. Thorpe failed to disclose that he was working with an individual who was excluded from participating in the program.

McLain used an alias, “Julian Winchester,” to conceal his identity. He frequently traveled from North Carolina to Jacksonville, Florida, to assist in Coastal Bay’s operations.

McLain and his family received significant financial benefits due to his involvement in Coastal Bay, including the use of a company credit card. Additionally, his family received more than $10,000 in direct payment withdrawals from the company’s business account.

The case is being prosecuted by assistant U.S. Attorney Jason Mehta and Jay Taylor.

A sentencing date has not yet been set.

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