Authorities in Arkansas have suspended Medicaid payments to a Missouri nonprofit after a former executive with the agency was arrested as part of a scheme to improperly bill almost $2.3 million in claims for mental health services.
The Arkansas Democrat-Gazette reports that the suspension Friday of Medicaid payments comes a day after Robin Raveendran, formerly executive vice president for Preferred Family Healthcare, was arrested on two counts of Medicaid fraud.
An investigator’s affidavit says Raveendran reported to Milton “Rusty” Cranford, a lobbyist who directed Preferred Family’s operations in Arkansas. The agency is based in Springfield, Missouri.
Cranford pleaded guilty this month in federal court to bribing state lawmakers.
Four former Arkansas lawmakers have pleaded guilty or have been convicted of corruption charges stemming from the investigation into Cranford’s actions.
An attorney for Raveendran could not be reached for comment Saturday.