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Raleigh couple accused of Medicare fraud

Posted August 31, 2009

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— A Raleigh couple is under federal investigation for allegedly pocketing nearly $13 million since 2007 from false Medicare claims for motorized scooters, powered wheelchairs and other medical equipment.

Kalu Kalu and his wife, Kecia Kalu, each face 16 counts of health care fraud and one count of conspiracy to commit health care fraud.

According to a federal indictment, the couple would use their businesses – Enuda Healthsource and Universal Medical Supplies, both in Raleigh – to bill Medicare for false and fraudulent prescriptions, and then provide less expensive or no equipment at all to the Medicare beneficiaries.

Two other people have also been implicated in the alleged scheme – Martin Ifeani Iroegbu, who ran Divine Medical Equipment Supplies Inc., and Nnenna K. Cornett, who operates States Medical Products LLC. Both of those companies are also in Raleigh.

Federal investigators say that the defendants would recruit and train salespeople to establish relationships with Medicare patients for obtaining their Medicare numbers and personal information.

The indictments said Iroegbu allowed Kalu Kalu to use Divine's provider number to submit claims on behalf of Enuda and Universal clients

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

Cornett also faces 16 counts of health care fraud and one count of conspiracy to commit fraud. It was unclear, however, if she has been arrested. There were no pending hearings scheduled for her in the federal court system as of Monday afternoon.

Kalu Kalu will be arraigned Sept. 8. His wife is scheduled for arraignment on Sept. 28. Both are on pre-trial release.

The case could go nationwide.

Kecia Kalu's attorney said Monday that the investigation involves others out of state and could result in more arrests.


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  • juchushu Sep 1, 2009

    Most of the fraud could be stopped if they required drug testing for anyone recieving any kind of government help. 65% of people who now haven't, wouldn't when the drug test came back.

  • superman Sep 1, 2009

    Medicare provides free scooters but there is absolutely no provision for people who need hearing aids. Private health care has no provision either. A good hearing aid will cost about 3,000 each and if you need two-- that is 6,000. Hardly an amount that any senior citizen can afford.

  • coolwill43 Sep 1, 2009

    Medical fraud is also when people come into a country illegally with false documents have kids and receive services where the tax payers and the insured end up having to pay; but this country can not see or don’t want to see that. Not saying this is a US citizen but last week a US citizen received medical care under a different social security number and this government chased him down while overlooking what stares them in the face every single minute of the day.

  • colliedave Aug 31, 2009

    How much fraud is in the Medicare/Medicaid system? I would assume that fraud is fairly commonplace given the size of the system and given the expanding scope of Obamacare, fraud will continue to grow.

  • MileageWarrior Aug 31, 2009

    were these people even US nationals? or did they come to the land of the free and the home of the brave to take advantage of the poor at the expense of the tax payers?

  • fatcat11 Aug 31, 2009

    It does not matter..they just print more money..

  • MileageWarrior Aug 31, 2009

    how disgusting. at $13,000,000, its not like they will be able to pay it back either.

  • ccs1920 Aug 31, 2009

    I wonder if any of them will still be in the US when it comes time to report to prison. This country has reached it's peak and is now heading downhill.

  • howdiditgettothis Aug 31, 2009

    Yup - that explains the $675,000 house they own in Wake County.


    If Nenna K. (Kalu?) Cornett is related to them, she's in a pretty nice place, too.

    Confiscate the house, and anything else, and make these losers serve hard time.

  • dlb800 Aug 31, 2009

    Yeah, well, what can you expect. $13,000,000 and spent 26 months in jail.. not a bad trade.

    If you want to stop this kind of thing, then increase the use of capital punishment. It may not prevent someone from committing their first crime, but it will stop them from doing it again!