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Attorney General's News Release

June 8, 2010

Attorney General Koster announces sentencing in Springfield Medicaid fraud case--longest prison term for Medicaid fraud in Missouri history--

Jefferson City, Mo.-Attorney General Chris Koster said today Greene County Circuit Court Judge Thomas E. Mountjoy has sentenced Kevin Wayne Louderback to 12 years in the Missouri Department of Corrections for misappropriating more than $700,000 from Medicaid. Koster said a review of his office's Medicaid Fraud Control Unit records indicates this is the longest prison sentence ever imposed in Missouri in a Medicaid fraud case.

"One of my top priorities for this Attorney General's office is to prosecute those who cheat Missouri's Medicaid system," Koster said. "This 12-year sentence is indicative of the success of our efforts to increase enforcement of Missouri's Medicaid fraud laws. This is the sentence my office recommended; this is an appropriate sentence; and I am gratified that justice has been served."

Louderback, a Springfield insurance broker, pleaded guilty in December to 12 counts of Medicaid fraud. Koster said Louderback furnished applications with false information to the Missouri HIPP program, a Medicaid program that pays for the private health insurance premiums for certain individuals with high medical costs. He represented that the monthly insurance premium rates were greater than they actually were and then pocketed the overpayment. Koster said Louderback also offered a kickback to people to get them to enroll in an insurance program, fraudulently misstated an insurance company's rate, and then forged documents to set out the false rate.

Koster said citizens should report suspected Medicaid provider fraud or abuse and neglect to his Medicaid Fraud Hotline toll free at 800-286-3932, e-mail the complaint or complete a complaint form at the Attorney General's Medicaid Fraud Website at http://ago.mo.gov/divisions/medicaid-fraud-control-unit-faqs.htm.



 
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