Eastern District of Wisconsin Participates in National Health Care Fraud Law Enforcement Action

Today, United States Attorney Gregory J. Haanstad announced that a grand jury had indicted Lori Banyard Butts (age 47; of Wales, Wisconsin) in connection with an alleged scheme to defraud Wisconsin Medicaid and the Centers for Medicare and Medicaid Services.

The indictment charges Butts with eight counts of healthcare fraud, in violation of Title 18, United States Code, Section 1347, and eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343. The indictment alleges that through her company, Butts billed for the staffing of adult family homes that was not provided. The indictment alleges that her company received approximately $1.4 million to which it was not entitled, and that Butts then converted a substantial portion of this money to her personal use.

U.S. Attorney Haanstad explained that the indictment in this case was part of the Department of Justice's 2024 National Health Care Fraud Enforcement Action, which was a strategically coordinated, two-week initiative that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings.

More on the nationwide effort, including statements from the Attorney General and the leadership of other participating federal agencies and departments can be found here https://www.justice.gov/opa/pr/national-health-care-fraud-enforcement-action-results-193-defendants-charged-and-over-275-0.

If convicted, Butts would face up to ten years' imprisonment on each of the health care fraud counts and up to 20 years' imprisonment on the wire fraud counts. Each count of conviction also could result in a fine of up to $250,000.

The case was investigated by FBI-Milwaukee, with assistance from the Criminal Investigation division of the Internal Revenue Service. The matter is being prosecuted by Assistant United States Attorneys Carter Stewart and Zachary Corey.

An indictment is merely an allegation. All defendants are presumed innocent.

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