Switch to the new WRAL
Local News

Raleigh CEO sentenced to more than 6 years in prison for health care fraud

Posted December 8, 2022 6:18 p.m. EST
Updated December 8, 2022 9:51 p.m. EST

A gavel next to a stack of court records.

A Raleigh CEO was sentenced Thursday to more than six and a half years in prison for health care fraud.

According to the U.S. Department of Justice, Tanya Grant, 51, was investigated for a health care fraud scheme she carried out between 2017 and 2021 through two companies she controlled – Carolina Rehab Products (CRP), also known as Atlantic Brace, at 6900 Six Forks Road in Raleigh; and Blue File, at 1204 North Ellis Ave. in Dunn.

In total, Grant caused CRP and Blue File to bill Medicare for more than $50 million in durable medical equipment (DME) between 2014 and 2021, of which Medicare paid Grant more than $17 million.

Grant used these funds to purchase a home in Raleigh, a townhome in Florida, a Porsche, several Range Rovers, several Jeeps, a boat, jewelry, art and electronics, as well as amassing more than a million dollars in cash and investments, according to the Justice Department.

“This defendant was motivated by greed, scheming to steal millions in taxpayer dollars meant for senior citizens and the needy,” said Michael Easley, U.S. Attorney for the Eastern District of North Carolina. “She used her fraud to fuel her lavish lifestyle, including a vacation home, luxury cars, jewelry and a boat. Health care fraud like this costs taxpayers billions of dollars each year. We will use every avenue to root it out and bring offenders to justice.”

The scheme

CRP and Blue File were licensed to supply DME, such as neck and back braces, to Medicare beneficiaries.

The U.S. Department of Health and Human Services Office of the Inspector General and the FBI investigated the case.

The investigation revealed Grant had purchased lists of Medicare patient names from companies overseas.

She billed Medicare for supplying these patients with medical equipment, even though no equipment was actually shipped, in many cases.

Medicare was also billed by Grant’s companies for supplying medical equipment to 422 deceased individuals. Grant caused CRP to file at least 1,464 claims to Medicare on behalf of these deceased individuals, billing more than $347,000 to Medicare.

When she was audited by Medicare contractors, Grant forged physician orders to support her billings and prevent the discovery of her scheme.

The investigation also revealed Grant's two companies shared many of the same employees and submitted DME claims for many of the same people.

CRP was also the subject of a federal investigation in 2015. This investigation revealed that Grant was paying commissions for patient referrals.

As a result of this investigation, Grant had to submit a corrective action plan, in which she agreed to abide by regulations and refrain from misconduct.

Grant pleaded guilty on July 6, and her assets have been seized by the government in reparation of the millions of dollars she stole from the government.

Our commenting policy has changed. If you would like to comment, please share on social media using the icons below and comment there.