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.

6:32 a.m. • 5-18-13

Weather Forecast for Raleigh

  • Today: Thunderstorm.
    • Hi: 82° F
  • Sun: Thunderstorm.
    • Hi: 78° F
  • Mon: Thunderstorm.
    • Hi: 80° F

Other Locations

> 7 Day Forecast

Doppler Image

Published: 2010-03-02 10:23:00
Updated: 2010-03-02 10:23:00

Businessman gets prison time for 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 $12.6 million from false Medicare claims was sentenced Monday to 7½ years in prison.

Kalu Kalu, who pleaded guilty in September to conspiracy to commit health care fraud and health care fraud, also was ordered to pay $4.6 million in restitution to the Medicare program.

Kalu was among four people indicted last year who federal investigators said would recruit and train salespeople to establish relationships with Medicare patients to obtain their Medicare numbers and personal information.

Investigators said Kalu used the Medicare provider number of co-defendant Martin Ifeani Iroegbu to submit bogus claims for scooters. Kalu also used his Raleigh businesses, Enuda Healthsource and Universal Medical Supplies, to bill Medicare for health care aids that were never provided to beneficiaries, authorities said.

“The Medicare system was enacted to assist retired and elderly citizens in obtaining needed health care. Unfortunately, this defendant targeted this system as an easy mark, bilking the American taxpayer out of millions of dollars," U.S. Attorney George Holding said in a statement.

As part of a plea agreement, 15 counts of health care fraud were dismissed against Kalu.

Iroegbu is serving a 26-month federal prison sentence after pleading guilty to health care fraud and aiding and abetting in the case.

Charges were dismissed against Kalu's wife, Kecia Kalu, and Nnenna K. Cornett, who operates States Medical Products LLC in Raleigh.

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

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


24 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 24 COMMENTS

This story is closed for comments. Comments on WRAL.com news stories are accepted and moderated between the hours of 8 a.m. and 8 p.m. Monday through Friday.

Latest Comments
Don't steal from the guvment, they don't like the competition!

what a shame...

jesmyopinion, you might want to read that article. It was supposed to be life under the three strikes law but they didn't do it, again. The man, a career criminal, has spent 22 of 27 years behind bars.

would love to know where the $ has gone and why the co-conspirators who probably did the most bilking of dollars got off. Wonder if that money was wired out of this country and now lost...that would be a better story. WRAL... start investigating that. Do they keep a million dollar home now? Do they get off?

"A County judge on Monday sentenced a man who walked out of a store with a package of cheese in his trousers to seven years and eight months in prison."

http://www.sacbee.com/2010/03/02/2575168/woodland-cheese-shoplifter-gets.html

It is sad when someone who steals millions of taxpayers dollars is sentenced less time than someone who steals a package of cheese.

View Comments VIEW ALL 24 COMMENTS