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Press Release

Assisted Living Home Sentenced for Medical Assistance Fraud Scheme

May 20, 2019

The State of Alaska today announced that Anchorage Superior Court Judge Patrick McKay has sentenced Margaret Williams and her assisted living home corporation, Flamingo Eye LLC, for defrauding the State of Alaska Medicaid system. Ms. Williams was sentenced to serve a term of eighteen months in jail. An additional three and a half years are suspended, for a total potential sentence of up to five years in jail. Her corporation, Flamingo Eye LLC was sentenced to a $2,050,000 fine. In crafting the sentences, Judge McKay found that he needed to reaffirm the community’s standards and deter other members of the community from exploiting disabled individuals to defraud Medicaid.

The State also asked Judge McKay to issue a restitution order in the amount of $1.1 million, to compensate for the funds that Williams and Flamingo Eye LLC fraudulently obtained from the Alaska Medicaid system. A hearing to determine the amount of restitution has been set for July.

The jury acquitted Williams’ daughter, Princess Turay, of all charges.  Williams’ son, Donald Kallon, currently has a warrant out for his arrest and the State believes he has left the country.  Williams’ former employee, Wilson Esapa, had his charges dismissed in exchange for testifying at trial.

For a prior press release related to the trial and convictions, please refer to the September 4th 2018 release, The State of Alaska announces guilty verdicts in Medical Assistance Fraud scheme run by assisted living home

Anyone who sees someone engaging in medical assistance fraud, or any type of fraud or criminality in an assisted living home, is encouraged to report the crime to the Medicaid Fraud Control Unit by calling 907-269-6279, or to the Department of Health and Social Services Medicaid Program Integrity Office, or by filling out the online form found at Alaska Medicaid Fraud Control Unit website.

CONTACT:  The Medicaid Fraud Control Unit, in the Department of Law Office of Special Prosecutions, at 907-269-6279.

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Department Media Contact: Senior Assistant Attorney General Cori Mills at (907) 465-2132 or cori.mills@alaska.gov.