A Bettendorf woman has been sentenced to six years in federal prison for five counts of wire fraud and one count of benefits fraud she committed while working as a sales director for a healthcare solutions company.
Michele Lynn McGee, 45, was sentenced Wednesday by U.S. District Judge John Jarvey during a hearing in U.S. District Court, Davenport. In addition to her prison sentence, McGee must serve three years on supervised release after she completes her prison term.
There is no parole in the federal prison system.
McGee had pleaded guilty to the charges Aug. 28.
According to a news release issued by the Department of Justice for the Southern District of Iowa, McGee was hired by Boston, Massachusetts-based UbiCare as director of sales as the company attempted to expand its markets into the Midwest.
UbiCare markets interactive mobile messaging to health-care providers throughout the country.
McGee began working for the company on May 12, 2014, and ended her employment Feb. 12, 2015.
During that time, she allegedly signed five new clients, hospitals, to contracts with UbiCare totaling $1,896,375. However the contracts were fraudulent and also contained signatures forged by McGee.
Her salary, commission and bonuses totaled $115,973, all of which McGee has been ordered to pay back to UbiCare.
Additionally, beginning on Feb. 12, 2012, McGee received Supplemental Nutrition Assistance Program, or SNAP, benefits and Title XIX Medicaid benefits through the Iowa Department of Human Services, or DHS. The benefits continued until July 2014.
McGee received more than $11,000 in fraudulent food stamps and Medicaid benefits by not reporting her household earnings. McGee must return to the state of Iowa $11,514.91.
Also, from February 2012 through August 2012, McGee worked from home for RXS Group LLC, which, according to its website, provides multi-channel sample management solutions to pharmaceutical and biotech companies.
McGee informed RXS that she obtained a contract with the Nevada prisons for RXS to provide pharmaceutical medications for five years. However, the contract was fraudulent and McGee forged the signature for the agreement.
Based on the contract, RXS drew up a business plan for expanded operations in Nevada that included entering into purchase agreements for a pharmacy and equipment needed to package medications. The company suffered a severe financial loss for which McGee has been ordered to pay $384,869.57 in restitution.
The cases were investigated by the Bettendorf Police Department and the Federal Bureau of Investigation.