A federal grand jury indicted a former Sheppard Pratt Health System director for approving $2.5 million in false payments to a company that she and her husband secretly controlled, federal investigators said Thursday.
Lyneth Nyabiosi, 49, headed a department at Towson-based Sheppard Pratt responsible for managing patients' records, according to the indictment released by U.S. Attorney Rod J. Rosenstein and FBI Special Agent in Charge Stephen E. Vogt. She worked for the mental health provider for 14 years.
In 2007, prosecutors allege, Nyabiosi used her position to enter into a contract with Information Management Solutions Technology, a company controlled by her and her husband, Willie Evans III. To get around the conflict-of-interest clause at Sheppard Pratt, prosecutors say, her husband ran the company under a false name, claiming the firm was run by an account representative named "James Davis" and "James Davies." No such person existed.
The indictment also accuses the defendants of submitting more than 150 false invoices requesting payment to the company for work never performed or overcharging for work that was done, including misrepresenting the number of sensitive medical records it shredded.
Nyabiosi personally approved all of the false invoices, totaling about $2.5 million, the indictment says. She and her husband allegedly used the money for personal expenditures, including loan and mortgage payments; home renovations and upgrades; personal wire transfers to Africa; and vehicle, food, clothing and entertainment expenses.
The couple did not return calls to their home in Bear, Del.
Sheppard Pratt officials declined to comment on details of the case because of the criminal investigation but said no patient's personal data was compromised.
"All we can say is that this was a very disappointing situation for us, and we are cooperating fully with the investigation," said Bonnie B. Katz, Sheppard Pratt vice president of business development and operations.
If convicted, the defendants could face a maximum of 20 years in prison for each of eight counts of conspiring to commit mail fraud and mail fraud. They were released on home confinement under the supervision of U.S. Pretrial Services.
The indictment seeks forfeiture of $2.6 million, two homes in Bear and Newark, Del., and three vehicles.
twitter.com/ankwalker