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Aug. 27, 2012
TOPEKA Jason Sellers, a former executive with Kansas Health Solutions, a nonprofit managed care company that runs the state’s Medicaid program for the mentally ill, has been charged with a fraud scheme that federal prosecutors say cost the Kansas Medicaid program more than $2 million.
Federal officials filed charges in U.S. District Court of Kansas last week, accusing Sellers of having set up a shell company, Advanced Business Solutions, which he used to bill the managed care company, Kansas Health Solutions, for services.
According to the filing, Advanced Business Solutions used a Maryland printing company’s account to bill Kansas Health Solutions and the state's Medicaid program for more than $2 million in “bogus” consulting services between November 2007 and August 2011. The scheme involved dozens of transactions.
Sellers’ duties as chief financial officer at Kansas Health Solutions included overseeing payment of the printing company’s billings. The company was not identified in the court filing but allegedly participated in the scheme and benefited by marking up costs.
Sellers, 43, is accused of using some of the proceeds to build and furnish a 3,755-square-feet home on 11 acres outside of Lyndon. The site includes “an elaborate swimming pool, and a large outbuilding,” according to prosecutors.
Some of the money also was used to buy sports equipment, uniforms, and computers for several area sports teams and schools. The teams and schools were not identified in the filing.
Sellers was known to have been involved in several Topeka-area youth sports teams. In 2010-11, he was an assistant basketball coach at Lyndon High School. He also managed a U.S. Specialty Sports Association baseball team and had been an assistant coach for a USSSA softball team.
Sellers is charged with one count of wire fraud and faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
The U.S. Department of Health and Human Service, the FBI and the Kansas Attorney General’s office investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
The U.S. Attorney’s Office has notified the court that upon conviction, it intends to seize Seller’s house, cars, computers, and other items including an “Iron Mike” baseball pitching machine and a “Shoot-a-Way” basketball shooting machine.
Kansas welfare officials ordered a new oversight arrangement for Kansas Health Solutions soon after the problems were detected. The new arrangement required KHS to hire an independent, outside firm to manage its finances.
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