Katy Woman Sentenced to Prison for $600,000 Medicaid Fraud

A 48-year-old Katy resident, Kay Le Farmer, has been sentenced to 56 months in federal prison for defrauding Medicaid of over $600,000, according to U.S. Attorney Alamdar S. Hamdani.

The sentence, handed down by U.S. District Judge George C. Hanks, includes an immediate 56-month prison term followed by two years of supervised release. Farmer pleaded guilty on March 22 to charges related to her fraudulent activities.

During the hearing, the court learned that Farmer, the former office manager for her ex-husband, a therapist and Medicaid provider in the Houston area, had obtained information from over 300 patients. The court detailed Farmer’s attempts to lie and cover up her crimes, noting her apparent search for more employment opportunities to steal additional information.

The court characterized Farmer’s actions as “cunning and calculated,” emphasizing her “greed and selfishness” and her manipulation of those around her. Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid for counseling services that were never provided, following their separation.

In 2017, Farmer, previously employed at a pediatrician’s office, admitted to using her position to obtain patient information, subsequently submitting more fraudulent claims to Medicaid under her ex-husband’s provider number. From 2013 to 2018, Farmer submitted or caused the submission of approximately $617,983.86 in fraudulent claims for psychotherapy services, receiving approximately $432,924.69 in payment.

The investigation was conducted by the Texas Health and Human Services – Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit, and the U.S. Department of Health and Human Services – OIG. Special Assistant U.S. Attorney Kathryn Olson prosecuted the case.

Farmer has been permitted to remain on bond and will voluntarily surrender to a U.S. Bureau of Prisons facility in the near future.