Lorie Monroe, who ran Glen Allen-based Creed Xtreme Marketing Concepts, received the 37-month sentence in federal court in Richmond after pleading guilty in January to conspiring to receive kickbacks of more than $545,000.
Virginia Attorney General Ken Cuccinelli and U.S. Attorney Neil MacBride announced the sentencing.
Moore’s conviction is part of an investigation that also led to the indictment of former local pastor and businessman Joseph Hackett.
The investigation by the FBI and the Virginia attorney general’s Medicaid Fraud Control Unit found that Monroe, 51, hired workers to recruit children from government housing projects across Richmond who were Medicaid beneficiaries.
She would then refer the children to Hackett’s company, Richmond-based Access Regional Taskforce, which was licensed under contract with Medicaid to provide intensive in-home (IIH) therapy services, a program aimed at helping children and adolescents with mental health and behavioral issues.
Hackett’s company would then try to enroll them in its IIH program and bill Medicaid for alleged services.
But the government indictment alleges that Hackett fraudulently billed Medicaid for at least $1.57 million in illegitimate services.
Monroe was to receive half of the Medicaid payments for each child she referred.
Hackett was indicted by a federal grand jury in March on four counts of health-care fraud and one count of conspiracy to pay health-care kickbacks.
He faces a maximum of 10 years in prison for each fraud count and five years in prison for the conspiracy count. Hackett’s trial is set for Aug. 7 in federal court in Richmond.
In addition to facing 37 months behind bars, Monroe must pay $545,410 in restitution to the Virginia Department of Medical Assistance Services, the state agency charged with overseeing Medicaid in Virginia.
It’s unclear exactly what kind of business Creed Xtreme Marketing was, but an online profile attributed to Lorie Monroe described it as offering programs for quick, easy money — or, per the profile, a “TRUE CASH COW BUSINESS.”