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Memphis Woman Sentenced for Healthcare and COVID-19 Fraud

Image of a courtroom scene emphasizing justice in healthcare fraud cases.

News Summary

Nakita Cannady, a 49-year-old Memphis resident, has been sentenced to 14 months in federal prison for healthcare fraud and for obtaining COVID-19 relief funds fraudulently. Cannady misrepresented the healthcare services provided to clients and submitted false applications to secure financial aid during the pandemic. The court has also ordered her to pay substantial restitution amounts, highlighting the serious repercussions of her fraudulent actions.

Memphis Woman Faces Prison Time for Healthcare and COVID-19 Fraud

In a startling turn of events, a 49-year-old woman from Memphis, Nakita Cannady, has been sentenced to 14 months in federal prison after being found guilty of healthcare fraud and fraudulently obtaining COVID-19 relief funds. This case serves as a sobering reminder of the ongoing fight against financial crimes, particularly during challenging times like a pandemic.

Unveiling the Fraudulent Activities

Cannady, who owned and operated a company called What About Us In-Home Healthcare, was supposed to provide custodial healthcare services mainly for elderly patients. However, between May 29, 2017, and December 23, 2019, she misled Cigna Insurance by billing for 24-hour home healthcare services when, in reality, the actual care received by those patients was only between 8 to 12 hours per day. This deceptive practice raised eyebrows and brought her activities into question.

The repercussions of these fraudulent claims are severe. The court has mandated Cannady to pay a total of $193,508.10 in restitution to Cigna Insurance. This significant amount highlights the expansive financial impact her actions have had on the healthcare system and the potential barriers it creates for those genuinely in need of services.

COVID-19 Relief Fraud

As if that wasn’t enough, Cannady’s fraudulent actions didn’t stop there. From June 17, 2020, to April 15, 2021, during a time when many were struggling due to the pandemic, she submitted six fraudulent loan applications through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These applications were falsely reported under four different businesses: What About Us Childcare, What About Us Foundation, What About Us Adult Daycare, and What About Us In-Home Healthcare.

In her quest to secure financial aid, her applications contained numerous inaccuracies regarding dates of operation, gross revenues, costs of goods sold, number of employees, and payroll amounts. By presenting this false information, she aimed to tap into valuable COVID-19 relief funds intended to help struggling businesses survive during the unprecedented crisis.

Punishment and Consequences

The court has made it clear that such fraudulent behavior will not be tolerated. As a result, Cannady has been ordered to pay an even heftier amount of $346,882.13 in restitution to the Small Business Administration, a stark reminder that her actions have consequences, impacting not just her life but potentially the lives of those she defrauded.

In addition to her prison sentence, Cannady will face two years of supervised release following her time behind bars. This arrangement is designed to keep a watchful eye on her activities and ensure she abides by the law moving forward. The sentencing announcement came from Joseph C. Murphy, Jr., the Interim U.S. Attorney for the Western District of Tennessee, who emphasized the importance of holding individuals accountable for their dishonest actions.

Fighting Fraud in Healthcare

The case acts as a critical reminder of the ongoing battle against healthcare fraud. As organizations like the FBI are prioritizing the investigation of such offenses, it demonstrates a commitment to protecting vulnerable populations, ensuring that those who are truly in need receive the care and assistance they deserve. Joseph E. Carrico, the Special Agent in Charge of the FBI Nashville Field Office, underscored the agency’s dedication to tackling health care fraud.

As we move forward, it will be essential for citizens, especially those accessing healthcare services, to stay vigilant and report any suspicious activities. Ensuring that the money allocated for legitimate services actually gets to those who need it is crucial during these times of recovery and rebuilding.