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Caldwell Couple Sentenced In Medicaid Fraud

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By Paul Johnson

Boise, Idaho ( KMVT-TV / KTWT-TV ) – A Caldwell couple convicted in a Medicaid fraud case has been ordered to pay $11,888 in restitution to the Idaho Department of Health and Welfare, Attorney General Lawrence Wasden said. The sentences were handed down by 4th District Judge Melissa Moody against Michael Wallace, 45, and his wife, Heather Wallace, 42.

Michael Wallace was sentenced on Jan. 3 to five years in prison for two felony counts. But the judge suspended the prison terms, instead ordering him to spend 120 days in jail as a condition of probation. He plead guilty on Oct. 18, 2013, to one count of felony conspiracy to commit Medicaid provider fraud and one felony count of grand theft.

On Jan. 9, Moody sentenced Heather Wallace on similar charges. The judge sentenced Heather Wallace to 10 years in prison, but retained jurisdiction and ordered her to the custody of the Idaho Department of Corrections for an undetermined amount of time. The judge will decide at a future hearing, based on prison officials’ recommendations, whether to release her on probation or require her serve out the prison term.

The judge treated sentencing for Heather Wallace differently because she has a previous felony conviction from another state on her record.
Between Jan. 1, 2009, and July 31, 2011, Heather and Michael Wallace were employed by three different home health agencies providing developmental therapy and other care services to Medicaid recipients. An investigation showed that dates and times of the couple’s claimed work hours attending to clients overlapped with each other as well as with other service providers, resulting in double and triple billing for services provided to the same Medicaid recipients.

The investigation was initiated In May 2011 when a private citizen called the Medicaid Fraud Control Unit hotline expressing concern about the care being provided by Heather and Michael Wallace


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