Log in to WRAL.com with one click using your favorite social network:
OR
Log in using your WRAL.com account:



Wrong email/password combination.

Forgot password?

Register with WRAL.com using your favorite social network:
OR
Register for a WRAL.com account using our web form.

11:37 a.m. • 5-24-13

Weather Forecast for Raleigh

  • Today: Partly Cloudy.
    • Hi: 72° F
  • Sat: Clear.
    • Hi: 72° F
  • Sun: Partly Cloudy.
    • Hi: 75° F

Other Locations

> 7 Day Forecast

Doppler Image

Published: 2009-09-08 10:44:00
Updated: 2009-09-08 19:05:23

Businessman pleads guilty to Medicare fraud


Kalu Kalu runs after guilty plea
Kalu Kalu runs after guilty plea
print friendly

A Raleigh man who federal investigators say was at the center of an operation that pocketed more than $12 million from false Medicare claims pleaded guilty Tuesday to fraud.

Kalu Kalu pleaded guilty to one count each of conspiracy to commit health care fraud and health care fraud. He will be sentenced Dec. 14, when he faces up to 15 years in prison.

Kalu, his wife, Kecia Kalu, and two others indicted in the case would recruit and train salespeople to establish relationships with Medicare patients to obtain their Medicare numbers and personal information, according to federal investigators.

Investigators allege that the couple used the Medicare provider number of co-defendant Martin Ifeani Iroegbu to submit bogus claims for scooters. The Kalus also are alleged to have used their Raleigh businesses, Enuda Healthsource and Universal Medical Supplies, to bill Medicare for health care aids that were never provided to beneficiaries.

As part of a plea agreement, 15 counts of health care fraud will be dismissed against Kalu Kalu when he is sentenced, defense attorney Paul Sun said.

"Consistent with this plea agreement Mr. Kalu is cooperating fully (with authorities)," Sun said.

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

Kecia Kalu is scheduled for arraignment on Sept. 28.

The fourth defendant in the case is Nnenna K. Cornett, who operates States Medical Products LLC in Raleigh. She faces 16 counts of health care fraud and one count of conspiracy to commit fraud, but it's unclear whether she has been arrested.

The U.S. Department of Health and Human Services Office of the Inspector General reported in May that more than 10 percent of the $920 million Medicare paid in 2005 for powered wheelchairs had been misspent.

"This goes on all over the country. It's taking money from the taxpayers," Sun said.

To report Medicare fraud, call the state Department of Insurance weekdays at 800-443-9354.


25 Comments


WRAL.com welcomes your comments on this story. All comments are moderated prior to publication based on our posting guidelines. Please review them prior to posting and if your message is not approved.

View Comments VIEW ALL 25 COMMENTS

This story is closed for comments.

Latest Comments
I will just say ditto to lorivalentine1's comments.

Notice how the there's always reference when discussing a public government option to medicare? Never medicaid...gee I wonder why?

Seriously.. just heard on the new this guy lives in a 6800 sq. ft house... What a piece of work. How can any decent person prey on the elderly like that?? and to top it off the rest of us are paying for these pieces of work to live in their giant house. Hope we throw the book at them and take everything they own to pay back Welfare so the right people get their benefits.

What??? Take advantage of and defraud MEDICAID??? ( another fine government healthcare program) Nooo....say it isn't so.

this must be a new goverment program crafted by Axelrod it replaced meals on wheels with money on wheels

View Comments VIEW ALL 25 COMMENTS