Community Corner

Apple Valley Woman Sentenced to Four Years for Embezzlement, Health Care Fraud

An Apple Valley woman faces four years in federal prison for defrauding both her employer and Medica of over $1 million.

Wednesday, a federal judge sentenced Lori Jo Mueller, 48, to 51 months in prison for one count of wire fraud and once count of health care fraud. Mueller was charged on Jan. 9, 2013. She pleaded guilty about a month later, on Feb. 4.
Federal prosecutors say that from 2006 to 2012, Mueller siphoned off $840,000 from her employer, Edelweiss Home Health Care. Mueller apparently used her position as vice president of operations to issue payments to herself from Edelweiss' corporate account.

From March 2010 to June 2012, Mueller also bilked Medica, a health insurance provider, of over $600,000. As VP of operations, it was her job to administer claims submitted to various insurers for services rendered by Eidelweiss. Mueller double-billed the insurance company by charging more than one insurer for the same services.

Prison time is but one sanction imposed on Mueller by the court. Those convicted of health care fraud are barred from participation in federal health programs, including Medicare and Medicaid. 


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