Settlement reached in Tennessee health fraud case

NASHVILLE, Tenn. (AP) -- Federal prosecutors say a $220,000 settlement has been reached with a Florida-based provider of mental health services whose former employee billed the state of Tennessee for therapy sessions at nursing homes that were never held or were very brief.

Officials said Wednesday the settlement was with Paradigm Health Services of Largo, Fla., and involved their former licensed clinical social worker, Renee Vaughn.

Prosecutors said she pleaded guilty in 2009 to health care fraud and was sentenced to three years' probation and ordered to pay almost $86,000 in restitution.

In a news release, prosecutors said there was no evidence that Paradigm was aware of Vaughn's actions.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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