Press Release

The State of Alaska announces guilty verdicts in Medical Assistance Fraud scheme run by assisted living home

September 4, 2018

The State of Alaska today announces that an Anchorage jury has returned several guilty verdicts for felony Medical Assistance Fraud and Scheme to Defraud, as well as misdemeanor Evidence Tampering, against assisted living home corporation Flamingo Eye, LLC, as well as the corporation’s owner, Margaret Williams, for a medical assistance fraud conspiracy lasting from January 2011 to December 2016. The defendants were convicted of billing Medicaid for services not provided to disabled people residing in their assisted living facilities. The defendants billed, and Medicaid paid, several hundred thousand dollars for services that were never provided to the disabled residents of their homes. The jury acquitted Williams’ daughter, Princess Turay, of all charges.

This fraud came to light after a resident of home, Gilbert Nashookpuk, murdered the sole caretaker working at the time. Once the fraud came to light, Investigators with the Medicaid Fraud Control Unit coordinated with the Anchorage Police Department, the Department of Labor, the Department of Health and Social Services, and many residents of the Anchorage area. Medicaid Fraud Investigators engaged in an investigation that lasted well over a year to uncover several hundred thousand dollars’ worth of fraudulent billing and fraudulent recoupment by the company.

The State would like to thank the many members of the Anchorage community, the many law enforcement agencies, and all who participated in and cooperated with this lengthy investigation.

The top charges of felony Medical Assistance Fraud and Scheme to Defraud carry a possible sentence of up to 10 years in prison, a fine of up to $100,000 and restitution to the State of Alaska Medicaid program for Margaret Williams. The corporation itself faces a fine of up to $2,500,000 or treble damages. The sentence can include exclusion from billing the Alaska Medicaid program.

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 (PDF-71K).

CONTACT: The Medicaid Fraud Control Unit and the Office of Special Prosecutions can be reached at 907-269-6279. Copies of the information filed in this case and other matters handled by the Alaska Medicaid Fraud Control Unit are at http://www.law.state.ak.us/department/criminal/MFCU-cases/2017.html

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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.