A 44-year-old Indiana medical laboratory owner has been indicted on two felony counts involving theft and fraud of the Kentucky Medicaid Program, Attorney General Andy Beshear announced today.
Eric Daum, of Tell City, Indiana, was indicted by a Franklin County, Kentucky grand jury Sept. 25 on one count of theft by deception over $10,000, a Class C felony, and one count of devising or engaging in a scheme to defraud the Kentucky Medical Assistance Program (KMAP) of $300 or more, a Class D felony.
The indictment alleges that in 2015 and 2016 Daum, the owner of Riverside Cytology Laboratory in Tell City, fraudulently billed Kentucky Medicaid for laboratory services when there was not a qualified director employed by Riverside Cytology Laboratory.
As a result, he fraudulently received more than $10,000 in payment from Kentucky Medicaid.
The Office of Medicaid Fraud and Abuse of the Kentucky Attorney General’s Office investigated this case with the Office of the Inspector General, Cabinet for Health and Family Services. The Office of Medicaid Fraud and Abuse is prosecuting the case.
A charge is merely an accusation. A defendant is presumed innocent until and unless proven guilty.
Daum is scheduled to be arraignment Franklin Circuit Court at 10:30 a.m. Oct. 26, 2018.
Since taking office, efforts by Beshear’s Office of Medicaid Fraud and Abuse through civil settlements and criminal restitution have resulted in over $74 million in obligations to the state and federal Medicaid program, Medicare, Tricare, commercial payers and other entities.