Raleigh couple accused of Medicare fraud
Posted August 31, 2009 6:04 p.m. EDT
Updated August 31, 2009 7:00 p.m. EDT
Raleigh, N.C. — 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.