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Three Charged with TennCare Fraud Among 30 in Overton Co. Roundup

Thursday, June 28, 2012 | 06:30am

NASHVILLE – Three people are charged with TennCare fraud in an Overton County round-up involving the arrest of approximately 30 individuals for a total of about 100 charges involving prescription drugs.

The Office of Inspector General (OIG), working with the Overton County Sheriff’s Office, today announced the TennCare fraud arrests:

  • Danny Ray Boyer, Jr., 33, of Livingston, charged with one count of TennCare fraud and two counts of delivery of the painkiller Hydrocodone, a Schedule III controlled substance.  Boyer is accused of using TennCare to obtain the drug and on two separate occasions, selling a portion of the drugs to an undercover informant.
  • Lorie D. Smith, 45, of Livingston, charged with one count of TennCare fraud and one count of delivery of the opoid Suboxone, a Schedule III controlled substance used to treat morphine addiction because it simulates morphine without the addictive qualities.  Smith is charged with using TennCare to obtain the drug, and then selling it to an undercover informant.
  • David C. Kernell, 34, of Livingston, charged with three counts of TennCare fraud and three counts of delivery of the painkiller Oxycodone, a Schedule II controlled substance.  Kernell is accused of using TennCare to obtain the painkiller Oxycodone while planning to sell a portion of the drugs.

“The Overton County Sheriff’s Office has been a tremendous partner in stopping TennCare fraud and assisting the Office of Inspector General make arrests to stop TennCare fraud,” Inspector General Deborah Y. Faulkner said.  “We depend on local law enforcement to help us in all 95 counties of Tennessee.”

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison.  District Attorney General Randall A. York is prosecuting.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $3.5 million paid in restitution and recoupment to TennCare, with a total estimated cost avoidance of over $173 million for the TennCare program, according to latest figures.  To date, over 1,600 people have been charged with TennCare fraud.

Through the OIG Cash for Tips Program established by the Legislature, Tennesseans can get cash rewards for TennCare fraud tips that lead to convictions.  Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to and follow the prompts that read "Report TennCare Fraud."

TennCare Fraud | Press Releases