DHHS fails to find fraud, loses millions

First, there was Richardson Hollow, at one time the state's largest in-home provider for people with mental illness.

The Lewiston firm went bust in 2007, leaving taxpayers and former employees unpaid.

Meanwhile, two local agencies filed suit against owner Linda Hertell, claiming she set up a series of intertwining shell companies designed to keep her assets, including at least 14 properties in six counties, out of the hands of debt collectors.

Then, this past fall, came the even larger collapse of Possibilities Counseling, another provider of health care services with 500 affiliate therapists and case managers serving 10,000 mental health clients all over Maine.

The Auburn firm, operated by President Wendy Bergeron, closed in October after it became clear that $3.8 million in taxpayer money given her to pay her affiliates had somehow gone missing.

The counselors and case workers have filed suit to recover the money owed them. The state, meanwhile, has washed its hands of the case, claiming paying Bergeron was the end of their responsibility.

Then Monday, in perhaps the most brazen collapse yet, a Harrison woman operating the Living Independence Network Corp. in Norway, pleaded guilty to stealing $4 million from taxpayers through the state's MaineCare program.

Dawn Cummings Solomon, 42, admitted she billed the state for work that was never done and expenses that were never incurred over a four-year period.

Her appetite for stolen money grew over the years, according to prosecutors. She started out siphoning off about $80,000 per month in 2006, which became $107,000 per month in 2007 and $134,000 in 2008.

The pattern is frightening. In all three cases, millions of dollars were flying out of Augusta with apparently very little supervision and no audit control.

The Solomon case should be especially galling to taxpayers. Can it really be that for four years, people in Augusta just kept sending this thief money without any proof the work was being done?

That's astounding.

Worse, the state didn't uncover this fraud on its own. Only thanks to a telephone tip to an anonymous complaint line was this case broken. Save for that, she could have gone on bilking us for another four years.

What does all of this say about MaineCare, Medicare and Medicaid in general?

In October, the federal government shut down two health care agencies in Florida and accused them of stealing $83 million from taxpayers through Medicare.

The usual response from government is that the numbers seem large, but fraud is only a small slice of the money paid out.

Which must leave taxpayers wondering just how much fraud simply goes undetected for years or, worse, forever.

As all three of these cases show, the Maine DHHS is simply a check-writing facility with too few financial controls and too little oversight to guarantee state money is spent correctly.

We can only hope Gov. Paul LePage's new administration and the new Republican Legislature can better control this spending.

editorialboard@sunjournal.com

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Displaying comments, from newest to oldest

ojhuig's picture

"Control this spending"

Unfortunately, the Republican way of controlling it is to cut it off completely. That's what keeps the money coming in to the re-election coffers. Lepage could oversee reforms, but alas, he has only vendettas where his conscience should be.

Remember, the majority of voters said NO to Lepage.

K0NPHL1C7's picture

"Remember, the majority of

"Remember, the majority of voters said NO to Lepage."

How do you figure?

hutch1107's picture
verified

The MAJORITY of voters.....

...did indeed say NO!! He only won 38% of the vote, Now, simple math> 62% did NOT want him!! I think we should adopt measures as a lot of other states have. If no one gets a majority (50%+), then they have a run-off election between the top 2 vote getters.

hutch1107's picture
verified

The MAJORITY of voters.....

...did indeed say NO!! He only won 38% of the vote, Now, simple math> 62% did NOT want him!! I think we should adopt measures as a lot of other states have. If no one gets a majority (50%+), then they have a run-off election between the top 2 vote getters.

hutch1107's picture
verified

The MAJORITY of voters.....

...did indeed say NO!! He only won 38% of the vote, Now, simple math> 62% did NOT want him!! I think we should adopt measures as a lot of other states have. If no one gets a majority (50%+), then they have a run-off election between the top 2 vote getters.

hutch1107's picture
verified

SO sorry...

My computer's been freezing lately. Did NOT mean to triple post, and I guess you can't edit stuff out, even if no one has responded yet? Hmmmmmm- that shoud be a feature for us folks who have slower, older computers. Again, SORRY, folks!

armymom's picture

You have to think of the

You have to think of the elections as one of those cases you have had in life where you were asked to pick three and out of the list and put them in order of preference. For example given which place would you like us to go on our class trip A, B, C, D, E, F, and G pick your top three in order of preference. I pick C as my first choice, D as second, and A as third. Well if more people picked each get's weighted and with first choice getting 3 points, second choice getting 2 and third choice getting 1. The points get totalled and the place with the most points is where you go. Or people get divided up to do a project and there are projects A, B, C, D, E,F, and G to choose from. You pick your top three choices and they assign you according to preferences and space available. You might not get your first choice but you will get one of the three you are interested in. We all got only one vote here and there were something line 6 contenders the newspaper covered to scatter the votes among. We didn't get the simple majorities first choice we got what more people voted for than any of the rest. If we had done a weighted ranking we probably would have had the same winner and close to the same percentage. With more than 2 candidates it is highly unlikely you are going to get a straight up simple majority, over 50%, it is simply statistically not in the numbers expecting a simple majority is not reasonable. If you want a simple majority pass a law that only allows a 1 democrat and 1 republican on the ticket, no other candidates and no write-ins, not going to happen.

tron's picture

No, we could do as many other

No, we could do as many other jurisdictions do, if no one get a majority, they there is a run off between the top two vote getter's. It's really simple, if you want democracy to prevail.

hutch1107's picture
verified

Yes!

My point exactly, Tron!

armymom's picture

For years I have been writing

For years I have been writing here along with a number of others that MaineCare like insurance provides MUST send statements to clients to varify that what is being billed is being delivered. The cost of sending these statements would have been more than offset by what has been lost to just the above listed crooks who have been caught. Think of all that have not been caught; that money could be safely in the coffers to satisfy the statutory school funding requirement that has never been meet, wouldn't that be nice.

Publikwerks's picture

It's all good now

Is the USA Network/TNT/TBS has taught me anything, it's that you hire a crook to catch crooks.

It's gonna be great. LePage and Nutting could be a buddy team. They would get a classic car, maybe a trans am, and cruse Augusta looking for fraudulent Maine care charges, programs that need to be cut, and Liberals to rough up and shakedown.

dlaurels's picture
verified

It is worse than that

Certain people did know that there were serious problems with the program, however, they were not listened to by the people who should have been listening. This is all I can say right now, but those people know who they are.

BPK's picture

Awesome

This was an AWESOME tip provided by and unknown person. I think the administrators at DHHS should be thanking this person with a generous reward for the tip.....perhaps take some of the salary away and give it to the person who actually contributed to the State of Maine!

Old Bill's picture

Yes, Lil, they did.

Yes, Lil, they did. Regardless of the fact that the particular person to whom you refer has been elected to such an exaulted position in the Legislature, wrong is wrong. This just proves that the DHHS needs to be swept clean of all the incompetents there, beginning with the ones at the top. After all, the Department heads are ultimately responsible for the actions - or inactions - of their personnel.

Lil's picture
verified

leadership

Weren't they just firing of checks to some clown in the GOP leadership?

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