Arrest made in loss of state health funds

Thursday, Nov. 13, 1997 | 11:06 a.m.

A former claims manager for L&H Administrators was indicted and arrested Wednesday in connection with a scheme to defraud state and county employee health care programs out of more than $600,000.

Mary Ferris, 36, of Las Vegas faces a theoretical maximum of 160 years in federal prison and at least $5 million in fines if convicted of the 23 counts in the federal indictment, according to Assistant U.S. Attorney Marc Garber, who is prosecuting the case.

Ferris, also known as Jane Treher, is the first defendant in Nevada to be charged with 11 violations of the new federal statutes outlawing health care fraud and embezzlement from health care programs. She additionally is accused of 10 violations of the mail fraud statute and two counts of forfeiture.

Ferris allegedly used her position as claims manager for L&H to receive more than $600,000 on 155 fraudulent claims for services that were supposed to go to the actual beneficiaries.

The indictment contends that Ferris created 10 fictitious medical providers in L&H's computer system, typed in false claims, and opened mailbox drops to receive the fraudulent checks. It also says she opened bank accounts at Nevada State Bank to negotiate the checks.

To conceal the fraud, Ferris allegedly changed the beneficiaries' mailing addresses in L&H's computer to another mailbox drop she opened.

L&H was fired by the state and county earlier this year. The state is taking action to recover the $608,000 it lost in the scam. L&H has a $1 million bond to cover such criminal acts. The county lost about $15,000, according to the indictment.