Owner of home healthcare company gets 14 months for defrauding COVID programs
A woman in Memphis has been sentenced to 14 months in federal prison after being convicted of healthcare fraud, as well as fraud against COVID-19 relief programs.
Nakita Cannady, 49, owned and operated What About Us In-Home Healthcare, which advertised providing around-the-clock care to elderly patients. However, the U.S. Department of Justice said the company often provided services for only 8 or 12 hours a day, despite billing insurance for the full 24 hours.
Specifically, Cannady defrauded Cigna by submitting claims with inflated patient care hours. She will pay the insurer $193,508.10 as restitution, according to the DOJ. The incidents occurred between May 2017 and December 2019.
But the deception didn’t end there. Prosecutors said, in 2020 and 2021, Cannady filed for six unnecessary loans meant to support businesses during the COVID-19 pandemic, including from the Paycheck Protection Program. The DOJ said the applications contained bogus information, including false revenue, business expenses and payroll details.
She ultimately received funds to support four businesses, including What About Us In-Home Healthcare. Cannady was ordered to return $346,882.13 to the Small Business Administration as recompense.
Officers from the FBI led the investigation into the incidents of fraud, which were then prosecuted in court by the U.S. Attorney’s Office. Cannady was officially served an indictment in 2023, pleading not guilty to all counts before being convicted at trial.
“Those who exploit healthcare programs for personal gain will be held accountable to the fullest extent of the law,” Special Agent in Charge Joseph E. Carrico of the FBI’s Nashville Field Office said in a statement. “Healthcare fraud is a priority for the FBI, and we will continue to work with our partners to investigate those who prioritize greed over the well-being of others.”
After serving 14 months in prison, Cannady will be subject to an additional two years of supervised release. Her sentence began April 4.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.