Mutual of Omaha Claims Processor Sentenced to Prison

January 27, 2009

An Iowa woman who worked for Mutual of Omaha has been sentenced to two years in prison for processing false insurance claims on behalf of a Vermont woman.

Rachel Lenagh of Neola was sentenced Friday in Omaha, Neb., for conspiracy to commit health care fraud. She had faced a sentence of up to five years.

The 39-year-old pleaded guilty in October.

Officials with the U.S. Attorney's Office in Omaha say that between 2001 and 2006, Lenagh submitted claims for nonexistent medical expenses, resulting in nearly $1.4 million in payments to Sharon Johnson of West Dover, Vermont. In return, Lenagh received $95,600 from Johnson.

Johnson is awaiting trial in the case.

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On the Net:

U.S. Attorney's Office, District of Nebraska:
www.usdoj.gov/usao/ne