RALEIGH, N.C.(WNCN) – The vice president of a Raleigh healthcare company had plead guilty to a falsifying medical records.

Michael Easley, U.S. District Attorney for the Eastern District of North Carolina, announced Kala Sloan, 28, pleaded guilty Wednesday to falsifying physician orders on behalf of a company that billed Medicare for millions of dollars.

Information presented in court said between 2014 and 2021, Carolina Rehab Products, Inc. and Blue File DMC, LLC billed Medicare $50 million for durable medical equipment, such as back, shoulder, knee and wrist braces. In many cases however, prosecutors said the companies billed Medicare without supporting physician orders and without shipping the products. 

Easley’s office said Sloan was Vice President of Operations for the companies. Prosecutors said she knowingly submitted forged documents to cover up prior false billings. 

In October 2020, Cigna, a medical insurer, audited claims submitted by Carolina Rehab Products for reimbursement. Evidence presented in court said Carolina Rehab Products did not have doctor’s orders or medical records sufficient to justify the billing to Cigna.  At the direction of Sloan’s co-conspirator, Tanya Parrish Grant, prosecutors said she prepared blank prescription templates to mimic the orders that should have been in the patient files. 

Grant used the templates to forge and backdate the prescriptions and Sloan then gave those documents to Cigna, Easley’s office said.

Grant, 51, also of Raleigh, was the CEO and controller of the companies where Sloan worked. She pled guilty to orchestrating the scheme in July of 2022. 

Sloan pleaded guilty to making/using false healthcare writings and documents and aiding and abetting.  She faces a maximum of five years in prison.

The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorneys William M. Gilmore and Karen Haughton are prosecuting the case.