KHI News Service

Former Kansas Health Solutions exec sentenced to three years for Medicaid scam

Jason Sellers also ordered to repay more than $2 million

By KHI NEWS SERVICE | February 05, 2013

The former chief financial officer for Kansas Health Solutions has been sentenced to three years in federal prison for his scheme to steal more than $2 million in Kansas Medicaid funds.

Jason Sellers, 44, of Lyndon, also was ordered to pay back more than $2 million. He pleaded guilty to one count of wire fraud, according to the U.S. Attorney for Kansas Barry Grissom.

The house near Lyndon that federal prosecutors say Jason Sellers built and furnished with money stolen from the Medicaid program.

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Federal prosecutors said Sellers diverted the Medicaid funds to a shell company, Advanced Business Consulting, while he was at Kansas Health Solutions. The sham company supposedly was providing information technology services. At the time, Kansas Health Solutions was under contract to administer the state's Medicaid payments to community mental health centers.

Prosecutors said Sellers used the stolen money to buy equipment and uniforms for youth sports teams he was involved with between 2007 and 2011 and also built and furnished a $375,000 home on 11 acres.

The U.S. Attorney’s Office prior to the sentencing notified the court that upon conviction, it intended 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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