FOR IMMEDIATE RELEASE
Monday, January 13, 2025
Contact:
Nazneen Ahmed (919) 716-0060
RALEIGH – Attorney General Jeff Jackson and United States Attorney for the Western District of North Carolina Dena King filed a federal lawsuit against Benson I. Ejindu for allegedly submitting false claims to the North Carolina Medicaid program. Attorney General Jackson and U.S. Attorney King are seeking more than $5.5 million in damages plus substantial additional civil penalties. The lawsuit alleges that Ejindu submitted claims for reimbursement to the Medicaid program for medical supplies that were more expensive than what he actually provided to patients.
“North Carolinians rely on Medicaid to pay for health care and medical supplies,” said Attorney General Jeff Jackson. “If businesses try to make an unlawful buck off of taxpayer dollars, we’ll hold them accountable. I’m grateful to U.S. Attorney King for working with us to stop health care fraud.”
“Durable medical equipment providers that cause the government to pay more than it should for medical equipment and supplies waste taxpayers’ dollars and raise the cost of health care for everyone,” said U.S. Attorney King. “Our Office is committed to working with the North Carolina Attorney General’s Office and our law enforcement partners to put a stop to improper billing practices that exploit Medicaid, a taxpayer funded program that many people depend on to cover their health care needs.”
The lawsuit alleges that from at least May 19, 2017, through August 23, 2019, Ejindu, through medical equipment companies he allegedly operated, submitted claims to Medicaid for more expensive, specialized nutritional formulas for people with rare, inherited metabolic disorders. In reality, Ejindu allegedly knew those recipients actually received less expensive drinks like Ensure, PediaSure, Boost, and Glucerna.
The federal and North Carolina False Claims Acts authorize the governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted. It should be noted that the civil claims asserted in this matter are allegations only, and that there has been no judicial determination or admission of liability.
This matter was investigated by the United States Attorney’s Office for the Western District of North Carolina, the Federal Bureau of Investigation (FBI), the Office of Inspector General of the U.S. Department of Health and Human Services (OIG-HHS), and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID).
About the Medicaid Investigations Division (MID)
The Attorney General’s MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding.
To date, the MID has recovered more than $1 billion in restitution and penalties for North Carolina. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320. The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $8,453,116 for Federal fiscal year (FY) 2025. The remaining 25 percent, totaling $2,817,703 for FY 2025, is funded by the State of North Carolina.
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