Chicago/ Crime & Emergencies
AI Assisted Icon
Published on May 02, 2024
Former VA Psychologist Sentenced to Prison for Health Care Fraud and Obstruction of JusticeSource: Administrative Office of the United States Courts, District of Illinois

A former Department of Veterans Affairs psychologist will spend the next 10 months behind bars after a judge found her guilty of cooking up a scheme that involved submitting bogus medical documents and defrauding Medicare. Theresa A. Kelly, 57, of Herrin, was sentenced after pleading guilty to a series of charges including health care fraud and obstruction of justice, as per reports from the Justice Department.

Kelly admitted to crafting a tangled web of deceit during her employment at the VA, where, rather than serving those who served, she exploited her position to cash in on unearned leave and other benefits by way of forgery and fraud. The VA psychologist submitted fraudulent medical documentation, according to the Justice Department, some of which bore the forged signatures of legitimate medical providers to finagle time off from her day job.

"As a psychologist for the VA, the defendant was employed to provide important services to veterans, but instead she used her position to submit fraudulent medical documents with the intention of earning otherwise unauthorized leave and reasonable accommodations," U.S. Attorney Rachelle Aud Crowe was quoted in the court documents.

The scam ran even deeper as Kelly, running TS Onsite Mental Health, billed for phantom psychotherapy sessions that never happened at Shawnee Christian Nursing Center in Herrin. Over 400 Medicare claims, adding up to north of $54,000, were involved in the sham. And yet, as it often happens with such acts of deception, on days she was supposed to be tending to these patients, Kelly was snug in the comforting arms of approved medical leave, according to the Department of Justice report.

Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office was unequivocal about the message sent by the sentencing: “This sentence sends a clear message that VA employees will be held accountable if involved in fraudulent activities.” The Office of Inspector General's mission to root out misuse of taxpayers’ dollars was echoed by Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), Mario M. Pinto, who stated, “We will continue to work with our law enforcement partners to investigate conduct that compromises the integrity of federal health care programs.”

Kelly's obstruction of justice charge stemmed from a 2020 incident when she attempted to fudge a legal proceeding by passing off fraudulent documents as legitimate to her attorney—who then unwittingly used these to seek a continuance. A twist came to light when it was uncovered that her discrimination complaint in the U.S. District Court against the Secretary of Veterans Affairs included a letter impersonating a physician who had never treated her, leading to the dismissal of her suit.

Crowe concluded that her office is committed to chasing down and prosecuting government employees who dip their hands into the public till. Across the board, the agencies involved underline a shared dedication to integrity and justice in the realm of federal service and health care provision. In addition to her incarceration, Kelly must cough up $35,795.94 in restitution to the Centers for Medicare & Medicaid Services as repayment for her fraudulent claims.