Second Recruiter Convicted in City Nursing Scheme

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HOUSTON—Gwendolyn Kay Frank, 43, ofHouston, has entered a plea of guilty to conspiracy to violate theAnti-Kickback Statue for her role in role in the $45 million City Nursinghealth care scandal, United States Attorney Kenneth Magidson announced today.
The Anti-Kickback Statute prohibitsreferring beneficiaries to business that bill federal health care programs inreturn for payments. According to the plea agreement, Frank referred at least28 Medicare beneficiaries to the owner of City Nursing in return for $24,500.City Nursing then billed Medicare for approximately $1,051,392 worth ofservices for those individuals which were not provided and received $712,052 inpayments from Medicare and Medicaid.
Frank is the second recruiter to pleadguilty to conspiracy to violate the Anti-Kickback Statue this month and one ofa growing list of individuals convicted in the Houston-based City Nursinghealth care fraud conspiracy. Floyd Leslie Brooks, 45, of Houston, pleadedguilty earlier this month. The owner of City Nursing, Umawa Oke Imo, wasconvicted in May 2011 and sentenced to more than 27 years in federal prison forhis role in the health care fraud conspiracy which included making cashpayments to both Medicare beneficiaries and recruiters bringing Medicarebeneficiaries to City Nursing.
Frank was permitted to remain on bondpending her sentencing hearing, set for September 14, 2012. At that time, shefaces up to five years in prison and a $250,000 fine.
This case has been investigated by theFBI, Internal Revenue Service-Criminal Investigations, the Department of Healthand Human Services-Office of Inspector General and the Texas Attorney General’sOffice-Medicare Fraud Control Unit. Assistant United States Attorney JulieRedlinger is prosecuting the case.