An eastern Iowa woman will spend 72 months in prison after admitting in August to 5 counts of wire fraud and one count of benefits fraud.
Forty-five-year-old Michelle Lynn McGee of Bettendorf admitted to signing fraudulent contracts while working for a Boston company, UBICare,which markets interactive mobile messaging to healthcare providers.
McGee was the director of sales attempting to expand into the Midwest market and from May 12, 2014, through February 12, 2015 signed five hospitals as new clients to fraudulent contracts with UbiCare totaling $1,896,375. McGee was paid a salary, commission, and bonuses totaling $115,973, and was ordered her to pay that amount to the company in restitution.
Court information shows that beginning in February 2012, McGee received Supplemental Nutrition Assistance Program (SNAP) benefits and received Title XIX Medicaid benefits through the Iowa Department of Human Services (DHS). These benefits continued monthly until July 2014. During that time period, McGee received over $11,000 in fraudulent food stamps and Medicaid benefits by not reporting her household earnings.
McGee admitted that she knowingly withheld household income information from DHS because she believed her public aid would be canceled if DHS was aware of it. McGee was ordered to pay the State of Iowa $11,514.91. From February 2012 until August 2012, McGee worked from home for RXS Group, LLC, a company located in Utah. She obtained a contract with the Nevada prisons for RXS to provide pharmaceutical medications for a five-year period. The contract was fraudulent and contained a forged signature placed there by McGee.
Based on the contract, RXS drew up a business plan for expanded operations in Nevada which included entering into purchase agreements for a pharmacy and equipment needed to package the medications, suffering a substantial loss. McGee was ordered to pay restitution to RXS in the amount of $384,869.57.