Health Care Fraud Fugitive Gets 27 Months

Health Care Fraud Fugitive Gets 27 Months

POSTED: 2:56 pm MST February 24, 2009
UPDATED: 3:22 pm MST February 24, 2009
PHOENIX -- A former Phoenix woman was sentenced to 27 months in federal prison Monday, according to the U.S. Attorney’s Office.

Sheri Dawn Blackburn, 46, was also ordered to pay restitution in the amount of $88,441.30.

Blackburn was a fugitive for almost five years and pleaded guilty to one count of theft or embezzlement in connection with a health care benefit program on July 23, 2008, said Sandy Raynor of the District of Arizona Office of the U.S. Attorney.

Blackburn had been indicted in August 2003 on one count of theft in connection with a health care benefit program and one count of false statements relating to health care matters, but never appeared in court and became a fugitive, said Raynor.

The case against Blackburn was based on an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, said Raynor. It indicated that in 1998 Blackburn was hired by Eldorado Claims Services, a benefit claims processing company, to supervise health care claims processing.

While working here, Blackburn created a fictitious doctor and paid claims to this doctor for services that were never rendered. Blackburn then cashed 14 checks issued to this false identity, totaling $88,441.30, according to the U.S. Attorney’s Office.

After failing to appear in court for her indictment, Blackburn was a fugitive for nearly five years, said Raynor.

In March 2008, the Employee Benefits Security Administration found Blackburn in Iowa and alerted the U.S. Marshals Service, according to the U.S. attorney’s Office.

Blackburn was arrested in Eddyville, Iowa and was extradited to Arizona, where she has remained in federal custody, said Raynor.
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