PIKEVILLE, Ky. (WTVQ) – A two-year investigation has led to the indictment of a man who owns several rehabilitation facilities in Pike, Floyd and Harlan counties on a health care fraud scheme, according to Kentucky State Police.
Investigators say Eugene Sisco III is accused of illegally charging patients cash for services that are covered by Medicaid and then fraudulently billing Medicaid, dating back to 2016.
KSP says Sisco received more than $3 million in cash paid to him by patients seeking treatment for addiction.
Federal Search Warrants were executed on five of Sisco’s businesses in February of this year, according to investigators.
Sisco was indicted on Federal Wire Fraud charges, which carry a maximum of 20-years in federal prison as well as Health Care Fraud, which carries a maximum of ten-years in federal prison, according to State Police.
This was a joint investigation by Appalachia Narcotics Investigations, Diversion Enforcement Task Force ,the FBI HEAT Task Force (All Appalachia HIDTA Task Forces) and the United States Attorneys Office in Lexington. They were assisted by the Kentucky State Police, Harlan County Sheriffs Office, Harlan Police Department and the Kentucky Office of the Attorney General Medicaid Fraud Control Unit.