Oregon Department of Justice

Attorney General Ellen F. Rosenblum

Oregon Department of Justice - Attorney General Ellen F. Rosenblum
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FORMER DHS EMPLOYEE ORDERED TO SERVE 20 MONTHS FOR MEDICAID FRAUD

October 7, 2009

The case was prosecuted by the Oregon Department of Justice Medicaid Fraud Unit with the cooperation of the Washington County District Attorney's Office

Washington County District Attorney Bob Hermann and Oregon Attorney General John Kroger today announced that a former Department Of Human Services worker was sentenced to 20 months in prison for stealing $19,124.96 from the state.

Naudaan Hurh was sentenced today after pleading guilty to one count of Aggravated Theft in the First Degree; two counts of Theft in the First Degree and one count of Computer Crime in the First Degree. In addition to the prison sentence, Hurh must pay $19,124.96 in restitution.

"Cracking down on health care fraud is crucial to making health care available to all Americans," Attorney General Kroger said.

The Hurh conviction is part of Attorney General John Kroger's on-going efforts to protect the integrity of Oregon's health care system. In addition to criminal prosecutions, the Department of Justice has aggressively gone after pharmaceutical companies for conducting fraudulent drug marketing campaigns. Those efforts have recovered more than $19 million for Oregon in 2009. The Oregon Department of Justice is recognized as a national leader in the fight against health care fraud.

Hurh, a long-time DHS employee, started accessing the DHS computer system in 2007 to illegally alter Medicaid client information to issue 26 fraudulent checks to feed his gambling addiction. Hurh's scheme consisted of searching for Medicaid clients that received Supplemental Security Income (SSI) benefits through the Social Security Administration and reducing their SSI benefit amounts. This caused the DHS computer system to automatically issue an Oregon Supplemental Income Payment (OSIP) check in the amount of the SSI benefit reduction. Hurh would then change the name and the address of the Medicaid client so that the fraudulent OSIP checks would be sent to a name similar to his or his family members at addresses he could access. After the checks were issued, he would again access the computer system to change all the information back to its unaltered state. The stolen funds were from OSIP funds, which is state general fund money.

This case was investigated by the Oregon Department of Justice, Medicaid Fraud Unit and prosecuted by Assistant Attorney General Sheen Y. Wu with the cooperation of the Washington County District Attorney's Office. The Medicaid Fraud Unit investigates and prosecutes billing fraud; physical and financial abuse in Medicaid-funded facilities and fraud committed by Medicaid program employees.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.

Contact:

Tony Green, (503) 378-6002 tony.green@doj.state.or.us |
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