Published July 4 in the Elizabethtown News Enterprise

Manakee indicted on Medicare fraud charges

By BRIAN WALKER
News Journal Staff Writer

ELIZABETHTOWN — A federal grand jury has indicted the owner of a private ambulance service based in Elizabethtown for allegedly bilking Medicare by filing false claims.

James M. Manakee, 71, of Sonora, and two employees, Conna Bradley, 47, and Roger J. Hawke, 67, both of Upton, were indicted on 29 counts of health-care fraud, conspiracy to commit health-care fraud and mail fraud through Manakee Transfer Service Inc.

The three were charged with the crimes following an FBI investigation into Manakee's ambulance operation, according to the U.S. Attorney's office.

Assistant U.S. Attorney Hancy Jones III said Tuesday that the investigation does not involve Manakee's funeral homes in Elizabethtown, Sonora and Upton.

"This is limited to the Manakee transportation business," Jones said.

Representatives of the company would not comment on Tuesday, referring all questions to their attorney, Steve Pence. Pence could not be reached for comment.

Authorities allege that between January 1997 and July 1999, Manakee conspired with employees Bradley and Hawke to commit health-care fraud by billing Medicare for bogus ambulance and wheelchair-van services.

If convicted on all counts, Manakee and Hawke could face 260 years in prison and $7 million in fines each. If Bradley is convicted on all counts, penalties could be 255 years in prison and $6.75 million in fines.

The company allegedly billed Medicare for ambulance runs -- the only ones for which it will pay -- when a wheelchair van was used to transport Medicare patients, according to the indictment. Medicare would then reimburse the company for the false runs, according to investigators.

Manakee and Hawke also were charged with attempting to obstruct a federal health-care investigation. Authorities said the two tried to coerce former employees of the company to mislead or not speak to investigators about the case.

The indictments also seek to gain the criminal forfeiture of property from Manakee, specifically his stock in the company and a $60,000 certificate of deposit he holds, according to the U.S. Attorney's office.

Prosecutors may also seek the forfeiture of personal or business property that was derived from the commission of the alleged offenses.

As of Tuesday, none of the three had been arrested on the indictments and are due to be arraigned on July 17 in U.S. District Court in Louisville.

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