Apparently, the family that defrauds the federal government together heads to jail together. The Baileys, a husband and wife team along with their son, have been convicted of a health-care fraud conspiracy in three states.
This is the story of the Baileys, their multiple-state health-care fraud conspiracy, and how much time they are looking at once sentenced. They worked their scam in Tennessee, Kentucky, and Mississippi.
Health-Care Fraud Conspiracy in 3 Different States
Former school principal Calvin Bailey, his wife Sandra, and their son Bryan had set up quite the health-care fraud system. The family sold patients power wheelchairs and back braces they didn’t need. The patients were promised these items at no cost and the Baileys told them that everything was covered by Medicare.
The Baileys used falsified records to gain patient approval. They also gave kickbacks to a doctor and nurse who ordered the equipment for the patients but never actually examined them.
Working through Jaspan Medical Systems, the Baileys defrauded federal health-care programs of $4.0 million and pocketed $1.2 million in salary and sales bonuses before they were caught.
Baileys Caught and Convicted
Eventually, the Baileys’ activities caught up to them and they were investigated by the FBI, the U.S. Department of Health and Human Services, the Tennessee Bureau of Investigation, and the Mississippi Attorney General’s Office.
During the trial, many of the Baileys’ former customers testified that they received medical equipment despite not actually needing it. They also said they never even saw a doctor or nurse before receiving a wheelchair or back brace.
Falsified medical and financial records were also presented as evidence.
With the overwhelming evidence of their health-care fraud conspiracy, the Bailey family was convicted on February 27, 2018.
Calvin was convicted of one count of conspiracy to defraud the United States. Bryan was found guilty of conspiracy and wire fraud. Sandra was found guilty of 18 charges including health-care fraud and conspiracy.
Calvin is looking at up to five years in prison, while Bryan and Sandra are each facing long stretches of up to 20 years in prison. The Baileys’ sentencing hearings are scheduled for June.