Prince George’s County Man Pleads Guilty to Medicaid Fraud

BALTIMORE, MD (April 15, 2008) - Maryland Attorney General Douglas F. Gansler announced today that James Grayton, 48, of the 9000 block of Dangerfield Road in Clinton, pled guilty during the second day of trial in Baltimore City Circuit Court to defrauding the Medicaid program of $120,000. Mr. Grayton’s former company, Grant Grayton Urban Supports, Inc. (GGUS), also pled guilty to Medicaid fraud. Judge John C. Themelis ordered Mr. Grayton to pay $50,000 in restitution and directed the company to pay an additional $70,000.

From October, 2004, to December 2005, Grayton was the business manager and part owner of GGUS, a Medicaid provider. GGUS was a social work practice group and Grayton was in charge of the billings sent to the Medicaid program for services rendered. Although GGUS was prohibited by law to bill Medicaid for social work therapy performed by unlicensed individuals, 75% of the work billed to Medicaid over a 16 month period was performed by unlicensed persons, not a licensed psychiatrist. During that time, GGUS submitted over 2000 false claims, causing a loss to the Medicaid program of $120,000.

The case was prosecuted by the Medicaid Fraud Control Unit (MFCU) of the Maryland Attorney General’s Office and was referred to the Unit by the Department of Health and Mental Hygiene, Office of the Inspector General.