RALEIGH – The fallout continues from an IRS probe earlier this year conducted at a Murfreesboro business.

According to a press release issued Wednesday afternoon, United States Attorney George E.B. Holding announced that the Criminal Indictment charging Shirlene Reese Boone of Murfreesboro was unsealed.

Boone, making her initial appearance on Wednesday in Federal Court in Raleigh, has been charged with one count of conspiring to commit health care fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; 250 counts of aiding and abetting false statements relating to health care matters, in violation of Title 18, United States Code Section 1035; two counts of aiding and abetting aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and five counts of aiding and abetting failure to collect and pay over payroll taxes, in

violation of Title 26, United States Code, Section 7202.

According to the indictment, Boone was the principal owner, manager, and registered agent for Metropolitan Counseling Services, Inc. (MCS), Metropolitan Counseling Services, LLC Community Support Services, Metropolitan Counseling Services, LLC Case Management Services, and Mass Home Care Services, LLC.

MCS is a registered non-profit North Carolina corporation that provides community support services and HIV case management.

From 1997 to May of this year, Boone, via MCS, routinely submitted claims for reimbursement to the Medicaid program for community support services and HIV case management that were allegedly false. The indictment revealed Boone instructed employees that they were required to bill 37.5 hours per week of community support or HIV services or they would not be paid. Boone also instructed employees to draft progress notes that supported the 37.5 hours of reimbursable services.

In several instances, Boone directed MCS employees to fabricate progress notes for community support services allegedly performed by other MCS employees or former employees. In other instances, Boone also directed low-level employees to fabricate notes associated with certain dates of service for Community Support Services which had already been billed to the Medicaid program. The low-level employees were not sufficiently qualified or licensed to lawfully perform the billed services, according to the court document.

Boone routinely utilized the name and Medicaid identification number of its alleged customers to bill the Medicaid program for the services MCS, allegedly rendered, routinely listing the patient information on documentation, including but not limited to progress notes, associated with claims submitted by MCS to Medicaid.

During July, 2005 through September, 2006, MCS withheld

Withholding Taxes and FICA taxes from employee wages totaling approximately $392,970. Boone was obligated to pay over to the IRS these payroll tax amounts. While Boone filed quarterly payroll tax reports for all of the quarters during the period July 1, 2005 through September 30, 2006, she allegedly did not pay any of these taxes.

The indictment also alleges that Boone conspired to defraud the North Carolina Employment Security Commission.

Earlier this month, Darick Lamont Bryant of Ahoskie, manager of the community support services of MCS, and Lemuel Cobb of Murfreesboro, who served as the HIV Case Manager, pled guilty to charges stemming from the health care fraud conspiracy.

Bryant stipulated in his plea agreement to a loss to the government exceeding $1 million. Cobb similarly stipulated to losses exceeding $120,000.

At sentencing, Bryant faces up to 10 years imprisonment followed by up to three years supervised release and a fine of up to $250,000. Cobb faces up to five years imprisonment followed by up to three years supervised release and a fine of up to $250,000.

For her role in this case, Boone faces up to 10 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release, if convicted of the health care fraud conspiracy.

Boone also faces up to 20 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release if convicted of the mail fraud conspiracy.

For each charge of making false writing, Boone faces up to five years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.

For each count of aggravated identity theft, Boone faces a mandatory term of imprisonment of two years consecutive to any conviction under Count 2 or 49 (false writings), a fine of up to $250,000 and up to one year supervised release.

For each count of failure to collect and pay over payroll taxes, Boone faces up to five years imprisonment, a fine of up to $20,000, or both, and up to three years supervised release.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Investigation of this case was conducted by the Internal

Revenue Service – Criminal Investigations Division, the Medicaid Investigation Unit of the North Carolina Department of Justice and the Murfreesboro Police Department.

Assistant United States Attorney William Gilmore represents the government in this case.

In late May of this year, the Roanoke-Chowan News-Herald reported that numerous vehicles along with a U-Haul rental truck were seen outside Mass Home Care Services located at 827 West Main Street, Murfreesboro The property was cordoned off with police tape and Murfreesboro Police officers were onsite as well.

IRS Special Agent Nancy Hatfield confirmed agents were at that location. Hatfield is the Public Information Officer for the IRS Criminal Investigation Enforcement.

There were also reports IRS agents were at a separate property located on Main Street, Murfreesboro.

At the time, Hatfield would only say that, “IRS Special Agents are there conducting official business.”