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Williamson Co. Woman Charged with TennCare Drug Fraud

Tuesday, February 12, 2013 | 07:45am

NASHVILLE, TN – A Williamson County woman is charged in Rutherford County with TennCare fraud in a case involving prescription painkillers.

The Office of Inspector General (OIG), with the assistance of the Rutherford County Sheriff’s Office, today announced the arrest of Lori Malloy, 35, of Franklin.

Malloy is charged with three counts of TennCare fraud in charges accusing her of three times using a forged prescription to obtaining the painkiller Hydrocodone, using TennCare to pay for the prescriptions.

“We are working with local police and medical providers throughout the state to help us get this type of criminal activity out of the TennCare program,” Inspector General Deborah Faulkner said. “The Office of Inspector General is committed to eliminating the incidence of people fraudulently obtaining prescription drugs and letting TennCare pick up the tab.”

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison per charge.  District Attorney General William C. Whitesell, Jr., 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 1,700 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