A Prineville woman has been sentenced to four years in federal prison after orchestrating a fraudulent scheme that netted over $1.5 million from the Oregon Health Authority Medicaid Program. According to the U.S. Attorney's Office, Darla K. Byus, 55, utilized stolen identities to submit false claims while also filing inaccurate tax returns that underreported her income. Alongside the prison term, Byus faces three years of supervised release and has been ordered to repay more than $2 million in restitution.
Last year, Byus pleaded guilty to charges including health care fraud, aggravated identity theft, and making a false tax return. Over two years, she exploited her role as an OHA Medicaid Provider through her company, Choices Recovery Services, fabricating claims and using the identities of over 45 victims – many sourced from jail rosters. The extensive investigation spanned multiple agencies, uncovering the depth of Byus' deception. "Her crimes betrayed the trust placed in this company as a substance abuse treatment provider in Oregon," said Nathan J. Lichvarcik, Chief of the U.S. Attorney’s Office Eugene and Medford Branch Offices, in a statement obtained by the Department of Justice.
Investigators from the FBI, IRS Criminal Investigation, HHS Office of Inspector General, DOJ Tax Division, and the Oregon Medicaid Fraud Control Unit collaborated to dismantle Byus' fraudulent operations. "I am pleased that the joint investigation between our Medicaid Fraud Unit at Oregon DOJ and five federal agencies turned up the evidence needed for the United States Attorney to successfully prosecute this complex case," stated Oregon Attorney General Ellen Rosenblum.
Special Agent in Charge Steven J. Ryan with the HHS-OIG highlighted the collective dedication to "investigate those who threaten the integrity of federal and state health care programs and the people served by them," according to his statement shared with the public by the Department of Justice.
