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Slowly but Surely

Senior Director of Strategic Alliances
LexisNexis Risk Solutions - Government

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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