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Over $1M Returning to State in Medicaid Welfare Fraud Convictions

BATON ROUGE, LA – Attorney General Jeff Landry’s Medicaid Fraud Control Unit (MFCU) has achieved two convictions on a welfare fraud scheme costing Louisiana over $1 million.

Lanice Stamps, 39 of New Orleans, pled guilty to one count of Felony Theft and was ordered to pay $1,059,709.76 towards restitution for the money stolen and $300,000 to the MFCU in civil monetary penalties. She was also ordered to execute a mortgage to repay the State for Medicaid monies she used to pay her home mortgage.

Tia Smiley, 40 of New Orleans, pled guilty to one count of Medicaid fraud and was ordered to pay court costs and other fees, complete 100 hours of community service, and serve three years supervised probation. She and Stamps are now prohibited from maintaining employment, seeking employment, contracting with and/or maintaining an interest in any provider of Medicaid or Medicare.

“I commend my team for achieving these convictions which result in nearly $1.4 million back to Louisiana in restitution and civil penalties,” said General Landry. “My MFCU investigators and prosecutors work tirelessly to protect services for those in need and the taxpayers who pay for this welfare; today is a great example of their fine efforts on behalf of our State.”

Stamps was the owner of a behavioral health company (A New Directions Support Services) while Smiley worked as her biller. On top of the scheme for which they were arrested and prosecuted as Medicaid providers, Stamps and Smiley were also both Medicaid recipients.