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Hattiesburg, Miss. – Larry Carlton Jenkins, age 60, of Stringer, Mississippi, was sentenced on March 23, 2017 by U.S. District Judge Keith Starrett to 37 months in federal prison followed by three years of supervised release for making a false statement relating to a health care matter, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Derrick Jackson of the Health and Human Services Administration – Office of Inspector General.
Annie Elizabeth Jenkins, age 61, was sentenced to 13 months in federal prison followed by one year of supervised release for misprision of felony. Both defendants were ordered to pay restitution in the amount of $223,593.87 to the Centers for Medicaid and Medicare Services,
From November, 2009, and continuing thereafter until August, 2010, Larry Jenkins and Annie Elizabeth Jenkins owned and operated Available Medical Supplies, Inc. (“AMS”), a business which purported to provide medical equipment and compounded inhalation drugs in and around Laurel, Mississippi. AMS, as a medical provider, submitted claims for reimbursement to the Medicare program. During the time period charged, AMS, through Larry Jenkins, represented on claims that the inhalation drugs reflected on such claims for reimbursement were non-compounded inhalation drugs.
As of July 1, 2007, the Centers for Medicare/Medicaid Services revised nationwide policy regarding compounded inhalation solutions. After July 1, 2007, all compounded inhalation solutions were denied as not medically necessary for dates of service on or after July 1, 2007. AMS, after July of 2007, at the direction of Larry Jenkins, continued to compound inhalation drugs but billed Medicare for reimbursement as if they were non-compounded drugs.
Annie Elizabeth Jenkins, the compliance officer, knew of the false statements being made, failed to notify the appropriate authorities, and took affirmative action to conceal the fraudulent billing.
This case was investigated by the Health and Human Services Administration-Office of the Inspector General-Office of Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
