Mental Health Counseling Center Accused In Medicaid Scheme

MATTESON, IL - A mental health counseling business in Matteson is accused of wrongfully billing Medicaid for millions of dollars. The United States and State of Illinois filed a civil lawsuit against Laynie Foundation, Inc. and its owners Summer Matheson and Terrence Ewing on Tuesday alleging a four-year scheme that brought in $6.3 million in claims.

The lawsuit includes allegations that Matheson and Ewing instructed employees of the foundation with a location on Lincoln Mall Drive to fraudulently inflate reports of the mental health services they provided to youths and when challenged by employees responded “not to mess with [Matheson’s and Ewing’s] money.” A BuzzFile listing of the business indicates Laynie had 10 employees as recently as this year.

The lawsuit says that from January 2012 through February 2016 Laynie would also seek payment from Medicaid for non-reimbursable activities such as internal case reviews, staff training, clinical supervision, and record keeping. The two owners "exploited" the fact that most of the foundation's counselors were new to the profession, the lawsuit states.

It includes a False Claims Act violation that could allow additional financial penalties.

During the four-year time frame, authorities say Laynie submitted approximately $8.2 million in claims and received about $6.3 million of the total.

A further allegation is that Laynie violated state clinical supervision requirements by not having a licensed mental health professional certify that the services they performed were medically necessary and met professional standards of care.

A phone call to a number associated with the foundation on Wednesday was answered with a recording that the number is "temporarily unavailable."

Screenshot via U.S. Attorney's Office, Northern District of Illinois