Office of the Attorney General
Attorney General Conway Announces Indictments in Scheme to Fraudulently Obtain Medicaid, Food Stamp Benefits

Press Release Date:  Monday, May 16, 2011  
Contact Information:  Shelley Catharine Johnson
Deputy Communications Director
502-696-5659 (office)
 


Attorney General Jack Conway and his Office of Special Prosecutions today announced that a Franklin County grand jury has returned indictments against three women on multiple felony charges of Tax, Medicaid and Food Stamp Fraud.

The indictments allege that between 2004 and 2007, 43-year-old Melody Jones of Speedwell, TN and her daughter, 25-year-old Brooke Jones of Middlesboro, KY, participated in a scheme to fraudulently obtain more than $10,000 in Kentucky Medicaid benefits and more than $10,000 in Food Stamp benefits, now known as the Supplemental Nutrition Assistance Program (SNAP). The charges are Class C felonies and carry a penalty of five to 10 years in prison.

Melody Jones and Brooke Jones were each charged with two additional counts of Assistance Program Fraud from 2007 to 2011 and 2007 to 2009 respectively for giving false information to the Cabinet for Health and Family Services in order to qualify for Medicaid and Food Stamp benefits. Both additional charges are Class D Felonies, carrying penalties of one to five years in prison each.

The grand jury also charged Melody Jones with five counts of tax fraud, or willful failure to file a tax return, and charged Brooke Jones with two counts of willful failure to file a tax return and one count of filing a false tax return for the years 2005 through 2007.

Forty-two-year-old Kelly Miller of Pineville was indicted on five counts of willful filing a false tax return for the years 2004 through 2008. The tax fraud charges are all Class D Felonies carrying penalties of one to five years in prison each.

All of the felonies charged in the indictment, in addition to the prison time, carry an additional penalty upon conviction, of a fine up to $10,000 or double the amount of fraud, whichever is greater.

The indictments stem from a three-year investigation conducted by the Kentucky State Police, Drug Enforcement Special Investigations Unit following a referral from the Cabinet for Health and Family Services’ Adult Protective Services office in Bell County in September 2007.

The Kentucky Department of Revenue conducted further investigation upon referral from the Kentucky State Police.

The Franklin County Circuit Court has issued warrants for the arrests of all defendants. Arraignments will be set following their apprehension.

An indictment is an accusation only. All defendants are presumed innocent, unless and until proven guilty.