Attorney General Jeff Jackson, in collaboration with United States Attorney for the Western District of North Carolina Dena King, has filed a federal lawsuit against Benson I. Ejindu. The suit alleges that Ejindu submitted false claims to the North Carolina Medicaid program and seeks over $5.5 million in damages along with additional civil penalties.
According to the allegations, Ejindu claimed reimbursement for medical supplies that were more costly than those actually provided to patients. “North Carolinians rely on Medicaid to pay for health care and medical supplies,” stated Attorney General Jeff Jackson. He emphasized accountability for businesses attempting to profit unlawfully from taxpayer funds and expressed gratitude towards U.S. Attorney King for efforts to combat health care fraud.
U.S. Attorney King added, “Durable medical equipment providers that cause the government to pay more than it should for medical equipment and supplies waste taxpayers’ dollars and raise the cost of health care for everyone.” She affirmed commitment alongside law enforcement partners to address improper billing practices exploiting Medicaid.
The lawsuit details alleged actions by Ejindu from May 19, 2017, through August 23, 2019. It is claimed he operated medical equipment companies submitting inflated claims for specialized nutritional formulas while providing less expensive alternatives like Ensure and PediaSure.
Under both federal and North Carolina False Claims Acts, governments can recover triple the amount falsely obtained plus substantial penalties per false claim submitted. It is important to note these are currently only allegations without any judicial determination or admission of liability.
This investigation involved multiple agencies including the FBI, Office of Inspector General of U.S. Department of Health and Human Services (OIG-HHS), United States Attorney’s Office for Western District of North Carolina, and North Carolina Attorney General’s Office’s Medicaid Investigations Division (MID).
The MID focuses on prosecuting healthcare providers defrauding Medicaid as well as patient abuse within facilities receiving Medicaid funding. Since its inception, MID has recovered over $1 billion in restitution and penalties within North Carolina.
For reporting Medicaid fraud or patient abuse within the state contact MID at 919-881-2320. The division receives majority funding from U.S Department Health & Human Services amounting $8,453,116 federally with state contributions totaling $2,817,703 for fiscal year 2025.