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Thursday, March 28, 2024

U.S. sues counseling firm over Medicaid debts

Medical malpractice 05

OKLAHOMA CITY (Legal Newsline) — The U.S. Attorney's Office in Western Oklahoma is suing a mental health counseling company and its owner for $4.7 million, citing alleged fraud and misrepresentation in debt collection.

The U.S. Attorney's Office filed a complaint on March 14, in the U.S. District Court for the Western District of Oklahoma against the defendants, LXE Counseling LLC, CEO Lexie Batchelor and Chaz Avery Cook, alleging that they failed to pay their debt to the plaintiff.

According to the complaint, the plaintiff alleges it suffered monetary damages due to unpaid Medicaid debts. The plaintiff holds the defendants responsible because they allegedly transferred their assets in order to defraud and delay their debt.

The plaintiff seeks avoid the fraudulent transfer of property to Cook, all legal fees and any other relief the court deems just. The lawsuit was brought by Mark Yancey, acting assistant U.S. attorney in Oklahoma City.

U.S. District Court for the Western District of Oklahoma Case number 5:17-cv-00284-M

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