Shawn R. Blankenship, a 54-year-old nurse practitioner from Winfield, has admitted to four counts of health care fraud in Charleston, West Virginia. As the owner of Holistic Inc., a medical clinic in St. Albans, Blankenship confessed to knowingly submitting false claims to Medicaid and its Managed Care Organizations for services that were neither provided nor medically necessary.
Court documents revealed that Holistic Inc. offered various services such as opioid treatment, weight loss counseling, and smoking cessation counseling. The investigation discovered that claims for these services required the presence of a licensed provider. Blankenship acknowledged filing four false claims on October 29, 2020, including three for smoking cessation and one for an office visit. He admitted awareness that these services were not rendered as he was in Hilton Head, South Carolina during that period.
The fraudulent activities resulted in losses estimated at approximately $600,000. Blankenship is due for sentencing on July 21, 2025. He could face up to 40 years in prison along with supervised release and fines. Restitution will be determined by the court.
The guilty plea follows a comprehensive investigation into fraudulent billing practices within West Virginia's Southern District. Acting United States Attorney Lisa G. Johnston praised the efforts of several investigative bodies including HHS-OIG, FBI, MFCU, DEA, and HSI.
United States Magistrate Judge Omar J. Aboulhosn oversaw the hearing while Trial Attorney Jody King and Assistant U.S. Attorney Owen Reynolds are handling prosecution duties.
Further details can be accessed via PACER under Case No. 2:24-cr-37.