OKC mother, son sentenced to prison, ordered to pay nearly $770,000 in restitution to Medicaid

OKLAHOMA CITY – An Oklahoma City mother and son have been sentenced to prison for submitting false claims to Medicaid.

51-year-old Deborah Gray and 27-year-old Keith Gray II submitted false claims to Medicaid for behavioral health counseling.

On July 6, 2016, the Grays were indicted on 151 counts of health care fraud.

The indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated DAG Counseling Services, PLLC, which “held itself out as providing behavioral health counseling services to Medicaid-eligible children.”

Keith Gray was an employee at DAG Counseling.

According to the indictment, the Grays “executed three schemes” to defraud Medicaid through DAG Counseling:

  1. They caused to be submitted to Medicaid claims for “targeted case management services” for periods when children were actually being transported between home or school and the DAG Counseling offices; in violation of Medicaid regulations
  2. They submitted submitted or caused to be submitted to Medicaid claims for one-on-one “psychosocial rehabilitation services” that exceeded the billing maximum of 90 minutes per child per day; also in violation of Medicaid regulations
  3. They submitted submitted or caused to be submitted to Medicaid claims for one-on-one “psychosocial rehabilitation services” that were:
    1. Not actually provided
    2. Actually provided in groups of two or more children
    3. Provided for less time than billed to Medicaid

Both the mother and son pleaded guilty on January 4, 2017, to one count of executing each of the three schemes.

Deborah Gray was sentenced on Thursday and will serve 37 months in federal prison.

Kieth Gray II was sentenced Friday and will serve 12 months and one day in federal person.

After their imprisonment, they will each serve three years of supervised release.

They are also ordered to pay $769,578.38 in restitution to Medicaid.