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Memphis woman sentenced for fraud in healthcare and COVID-19 relief programs

LEGAL NEWSLINE

Friday, April 25, 2025

Memphis woman sentenced for fraud in healthcare and COVID-19 relief programs

Attorneys & Judges
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Reagan T. Fondren Acting United States Attorney for the Western District Of Tennessee | U.S. Attorney for the Western District of Tennessee

A federal judge has sentenced Nakita Cannady from Memphis to 14 months in federal prison, followed by two years of supervised release, for healthcare fraud and making false statements in loan applications under the Covid-19 Relief Program. The sentencing concluded on April 4, 2025, with Senior United States District Judge John T. Fowlkes, Jr., ordering her to pay over $500,000 in restitution to the victims. This announcement was made by Joseph C. Murphy, Jr., Interim United States Attorney for the Western District of Tennessee.

Nakita Cannady owned What About Us In-Home Healthcare, a business supposedly providing 24/7 custodial healthcare services. However, between May 29, 2017, and December 23, 2019, she fraudulently billed Cigna Insurance for round-the-clock care, aware that only 8 or 12 hours of service were delivered. She was ordered to pay $193,508.10 in restitution to Cigna Insurance.

From June 17, 2020, to April 15, 2021, Cannady submitted six fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications for businesses she controlled, including What About Us Childcare, What About Us Foundation, What About Us Adult Daycare, and What About Us In-Home Healthcare. These applications falsely reported operational details, gross revenues, employee numbers, and payroll amounts. She was ordered to pay $346,882.13 in restitution to the Small Business Administration.

Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) Nashville Field Office stated, "Those who exploit health care programs for personal gain will be held accountable to the fullest extent of the law." He added, "Health care fraud is a priority for the FBI, and we will continue to work with our partners to investigate those who prioritize greed over the well-being of others."

The case was prosecuted by Interim United States Attorney Joseph C. Murphy, Jr. and Assistant United States Attorney Raney Irwin. Assistant United States Attorney Christopher Cotten and former Assistant United States Attorneys Courtney Lewis and Murrell Foster provided assistance. The FBI Nashville Field Office – Memphis Resident Agency and the Tennessee Bureau of Investigation conducted the investigation.

For more information, contact the media relations team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for updates.

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