Slowly but Surely

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Close-up Of A Doctor's Hand Analyzing Report On White Desk

Scott Alexander Laney, 38, of Boise, Id., was sentenced for his role in a healthcare and aggravated identity theft fraud scheme that defrauded Medicare and Idaho Medicaid out of thousands of dollars. Laney’s scheme centered around the fraudulent delivery and payment of urine drug screenings for Medicare and Medicaid patients. (This fraud was anything but glamorous.)

Laney worked as a sales representative for Millennium Health, which performed laboratory testing of urine drug samples. These types of companies often hire sales representatives to increase the amount of lab tests so they can increase their profits. (Laney’s scheme is an interesting twist on marketing strategy.)

Abusing his role and access to sensitive data, Laney set up fraudulent accounts for K&K Treatment and Dishion Enterprises which conduct urine drug screenings. (I don’t think he’ll be getting a ‘Sales Representative of the Year’ award.) He set these accounts up using the names and identifying information of multiple nurse practitioners without their knowledge.

When testing was conducted by K&K or Dishion, the claim, which included the National Provider Identifier number of the nurse practitioner victims, was submitted to Millennium as medically necessary. The misuse of the nurse practitioners’ information caused Millennium to submit tens of thousands of dollars in fraudulent healthcare claims through Medicare and Idaho Medicaid.

Laney knew that the claims he submitted were not authorized by a medical provider and were not medically necessary. (His only concern was about the commission he received for each test conducted.)

A local doctor’s office, Healthcare With Heart, initially suspected Laney of fraud and contacted the Payette Police Department in 2016. The detective at the time investigated the case and brought it to the attention of the Attorney General. (Slowly, but surely, Laney has now been brought to justice.)

Laney was convicted following a five-day bench trial in October 2020. He was recently sentenced to 42 months in federal prison and was ordered to serve three years of supervised release following his prison sentence. Laney must also pay restitution in the amount of $29,795.49 in addition to a fine of $2,500.

Today’s Fraud of the Day comes from a Department of Justice Press Release “Boise Man Sentenced to 3.5 Years in Federal Prison for Health Care Fraud and Aggravated Identity Theft,” dated February 1, 2021.

BOISE – Scott Alexander Laney, 38, of Boise, was sentenced in U.S. District Court to 42 months in federal prison for health care fraud and aggravated identity theft, U.S. Attorney Bart M. Davis announced today.

U.S. District Judge B. Lynn Winmill also ordered Laney to serve three years of supervised release following his prison sentence, pay restitution totaling $29,795.49, and a fine of $2,500. Laney was convicted on October 5, 2020, following a bench trial.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.