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US Seeks Prison Time in Medical Fraud Case

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DES MOINES, Iowa (AP) — Prosecutors are seeking several years in prison for an Iowa woman whose mental health counseling center submitted false claims to Medicaid and insurers totaling $800,000.

A sentencing hearing for 47-year-old Angela Ellison is scheduled Friday before U.S. District Judge Stephanie Rose in Des Moines.

Ellison has pleaded guilty to health care fraud and money laundering in connection with thousands of false claims submitted by the Centerville center she founded. Her attorney’s asking for probation, saying Ellison didn’t profit from the claims but used the money to keep her business afloat and pay workers.

Prosecutor Craig Gaumer conceded Wednesday that a guideline sentence of at least six years in prison wasn’t justified. But in a memo to Rose, Gaumer argued that a substantial prison term is warranted for her “egregious” conduct.

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