Cheyenne Couple Gets 37 Months for Health Care Fraud
A Cheyenne psychologist and his wife have been sentenced to 37 months in federal prison for making false statements as part of a scheme to fraudulently bill Wyoming Medicaid for mental health services, which were never provided.
John Robert Sink, Jr., 68, and Diane Marie Sink, 63, were indicted in March 2018 by a federal grand jury for health care fraud, making false statements and money laundering.
The U.S. Attorney's Office says the two submitted bills to Wyoming Medicaid for $6.2 million in alleged group therapy between February 2012 and December 2016, but the bills were false and fraudulent because the services provided didn't meet Wyoming Medicaid's definition of group therapy.
The Sinks also falsely billed Medicaid for beneficiaries who were not participating in any activities, and therefore didn't receive any of the claimed mental health services.
When Wyoming Medicaid audited the Sinks in May 2016, the Sinks didn't have necessary documentation to support their billing, so they ordered an employee to create backdated treatment plans.
The couple then submitted these phony treatment plans to Wyoming Medicaid to justify the false group therapy bills and cover up their fraudulent billing scheme.
Each pleaded guilty to one count of making false statements in relation to health care as part of a plea agreement. In exchange, prosecutors dismissed the other counts in the indictment.
In addition to prison, the Sinks were also ordered to pay over $6.2 million in restitution and to forfeit over $750,000 in assets traceable to the fraud.