Four Charged with TennCare Fraud in Hamblen Co. Investigation

Monday, July 25, 2016 | 01:33pm

NASHVILLE, Tenn. – Four people are facing TennCare fraud charges after an undercover investigation in Hamblen County which was aimed at people selling prescription drugs.

The Office of Inspector General (OIG) and Morristown police officers charged four people with selling prescription drugs originally obtained and paid for through TennCare healthcare insurance benefits.

“Officers with the Morristown Police Department were key to building these cases and helping us make these arrests,“ Inspector General Manny Tyndall said. “By pooling our resources with local officials, we are covering much more ground and making progress in tackling the drug fraud problem, especially when people try to use public dollars to finance it.”

The four arrested are:

  • Samuel Gaines, 50, of Morristown, charged with three counts of TennCare fraud and three counts of delivery of a Schedule II controlled substance for selling the painkiller Morphine to an undercover informant;
  • Mark Cameron, 51, of Rutledge, charged with two counts of TennCare fraud, two counts of delivery of a Schedule II controlled substance and violation of drug free school zone for selling the painkiller Morphine to an undercover informant;
  • Chad E. Mallory, 32, of Bean Station, was charged with TennCare fraud and delivery of a Schedule II controlled substance for selling Buprenorphine, a drug used to treat opioid addiction, to an undercover informant; and,
  • Obie Barnes, 39, of Morristown, charged with TennCare fraud for selling Suboxone, a drug used to treat opioid addiction, to an undercover informant.

District Attorney General Dan E. Armstrong is prosecuting. Until June 30, 2016, TennCare fraud was classified as a Class E felony carrying a sentence of up to two years in prison per charge.  As of July 1, 2016, TennCare fraud was changed to a Class D felony punishable by up to four years in prison.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to more than $3 million being repaid to TennCare, with a total estimated cost avoidance of more than $163.6 million for TennCare, according to latest figures. To date, 2,680 people have been charged with TennCare fraud.

Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or visit the website and follow prompts that read “Report TennCare Fraud.”