Hellen Kiago at her arraignment at Worcester Superior Court on Wednesday, October 11th
A Kenyan woman in Worcester, Massachusetts was arrested on Wednesday and charged with stealing $2.7 million through Medicaid fraud.
Hellen Kiago, 47, is charged with defrauding the state’s Medicaid system through her Lifestream Healthcare Alliance, LLC company by over-billing and billing for services that not authorized.
At her arraignment on Wednesday at Worcester Superior Court, Massachusetts Assistant General Nita Klunder said Hellen defrauded the system by instructing her employees to forge physician signatures for care that was not authorized by a physician. She also reportedly billed for more hours than was authorized by physicians.
Lifestream Healthcare Alliance has offices in Worcester and Dracut, the court heard.
Assistant General Nita Klunder said that two days after a search warrant at the two offices on December 1st of last year, Hellen opened a bank account under her daughter’s name and deposited a he sum of money into the account. On July 28th authorities say they found $233,000 in the daughter’s account, and another $483,000 in two other accounts.
In January of this year, Hellen wired $1 million to a bank account in Kenya, and another $500,000 to the same bank account two months later.
Hellen faces five counts of Medicaid false claims and one count of larceny over $250 by false pretences.
She pleaded not guilty. Her bail was set at $100,000 cash. Hellen was also ordered by Judge Janet Kenton-Walker to surrender her passport and reported to the probation office every week if she manages to get out on bail.
Her next court appearance is December 6th.
Hellen’s defense attorney told the court that Hellen came to the US on a scholarship in 1998 and holds two masters degrees. The attorney also said that Hellen worked as a teacher in Worcester from 2001 to 2014. In addition to the health care company, Hellen owns a transport company, Lifestream Transportation, the attorney said.