A Little Rock psychologist has been indicted by a federal grand jury for defrauding Medicare and Arkansas Blue Cross & Blue Shield out of more than $500,000.
Krameelah Banks, 48, of Little Rock, owned and operated Arkansas Behavioral Center. “Although Banks treated some regular patients who received ongoing psychotherapy, most of her patients were referrals who were seen just once for the sole purpose of receiving pre-surgical psychological evaluations,” according to a news release on Wednesday from the U.S. attorney’s office for the Eastern District of Arkansas. “It is alleged that from 2021 through 2023, Banks billed for thousands of hours of psychology services that never took place by routinely charging Medicare and Blue Cross for ongoing psychotherapy in the names of persons who were referral patients seen only once, causing insurers to lose over $500,000.”
The indictment alleges that Banks billed for services rendered at ABC while she vacationed in Florida and Mexico. She also billed for more than 24 hours’ worth of services rendered in a single day, the news release said. The indictment also alleges that Banks billed for more than 130 sessions to several patients who were dead.
When questioned about the claims, Banks created fake records, the news release said. Banks also allegedly misled the FBI by blaming any overbilling on her online calendaring software, the news release said.
She is facing 23 counts of wire fraud, seven counts of making false statements in connection with health care, one count of lying to the FBI, and one count of aggravated identity theft, according to the news release.
Her plea and arraignment hearing is set for Thursday in federal court in Little Rock in front of U.S. Magistrate Judge Joe J. Volpe.
Banks didn’t have an attorney listed who was representing her as Wednesday afternoon, according to federal court records.
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