Corporate Compliance

TN company owner convicted in psychiatric Medicare and Medicaid fraud scheme

Compliance Monitor, July 7, 2010

A federal jury convicted Lorne Allan Semrau of three counts of submitting false and fraudulent claims to Medicare and Medicaid, according to a Department of Justice (DOJ) press release.

Semrau, owner, president, and CEO of Jackson, TN based Superior Life Care Services and Foundation Life Care Services, falsely provided psychiatric services and medications to nursing homes in Tennessee and Mississippi. According to the DOJ, Semrau, 64, billed Medicare and Medicaid for approximately $3 million worth of unnecessary services or services that were never performed.

Semrau’s healthcare fraud charges carry a penalty of up to 10 years imprisonment and a $250,000 fine.

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