Illinois VA Psychologist Theresa Kelly Indicted on Medicare Fraud Charges

January 5, 2023

A federal grand jury in Benton, Illinois, returned a six-count indictment charging a Veterans Affairs psychologist.

Theresa Kelly, 56, of Herrin, Illinois, is accused of engaging in a scheme to seek approved medical leave and reasonable accommodations from her former employer without valid documentation. She is also charged with submitting false medical documents as well as being accused for being involved with another scheme that would bill Medicare for services that she did not provide at a Southern Illinois nursing home.

The announcement was made Monday in a press release from the U.S. Department of Justice's U.S. Attorney's Office for the Southern District of Illinois.

A licensed clinical psychologist, Kelly was employed by the VA at its medical center in Marion, Illinois. Between November 2016 and August 2020, Kelly submitted fraudulent medical documentation in the name of real and fake medical providers as part of the approval process for reasonable accommodations and medical leave, including FMLA leave, according to court documents.

The indictment alleges Kelly provided the VA with letters and documentation purportedly from a “Dr. K. William Dixon” and “Amy J. Aron, Ph.D.” that detailed those providers’ alleged treatment of Kelly. Investigators later determined that there were no medical providers by those names practicing in Illinois. Thus bringing the charge of submitting false medical documents that bore the forged signature of two legitimate medical providers.

“Employees who make fraudulent claims to government agencies and assistance programs for personal gain threaten the public’s trust in our systems,” U.S. Attorney Rachelle Aud Crowe said in a statement. “Committing fraud and submitting false medical documents are serious offenses, and justice will prevail for those who attempt to take advantage of taxpayer dollars.”

The indictment also alleges in December 2020, Kelly obstructed justice in a civil proceeding in federal court by submitting fraudulent medical documentation to her attorney—the contents of which were used to seek a continuance of the judicial proceeding.

Additional charges include four counts of making false statements to the VA in connection with the false medical documents she submitted and her efforts to conceal the fraudulent nature of those documents.

Kelly is scheduled to appear on Monday, Dec. 19, for her arraignment before United States Magistrate Judge Reona J. Daly at the federal courthouse in Benton.

Kelly faces a maximum of 10 years in prison and fines up to $250,000. She could also be ordered to repay the government for her fraudulent billing of Medicare.

Source: Dominic Genetti, “VA psychologist from Herrin, Ill. faces federal charges,” The Telegraph, Dec. 12, 2022, URL: https://www.thetelegraph.com/news/article/VA-fraud-charges-17648985.php