Smith Co. Women Charged with TennCare Drug Fraud

NASHVILLE, Tenn. – Two women from Smith County are charged with TennCare fraud related to obtaining prescription drugs through TennCare insurance benefits, then selling a portion of the drugs.

The Office of Inspector General (OIG) today announced the arrests of Kimberly M. Smith, 46, and Pamela R. Gongaware, 59, both of Carthage.  The arrests are the result of a joint effort with the Carthage Police Department.

Smith and Gongaware are charged in separate indictments charging them with fraudulently obtaining prescription drugs, using TennCare to pay for the prescriptions.  Smith obtained Vyvanse, a stimulant that can be abused as a recreational amphetamine. Gongaware used TennCare to pay for the painkiller Oxycodone.  After obtaining the drugs, Smith and Gongaware both resold a portion of the pills.

“The illegal trafficking of TennCare drugs is a crime Tennesseans want to stop, and we simply will not tolerate it,” Inspector General Manny Tyndall said. “Enrollees who participate in selling drugs paid for by TennCare and those who buy them should understand this is a serious crime and we intend to prosecute.”

TennCare fraud is a Class E felony carrying a sentence of up to two years in prison.  District Attorney General Tom P. Thompson is prosecuting.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $5 million being repaid to TennCare, with a total estimated cost avoidance of over $176 million for TennCare, according to latest figures.  To date, 2,207 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 www.tn.gov/tnoig/ and follow the prompts that read "Report TennCare Fraud."