Doris Litle, of Deptford, was charged by the state grand jury with second-degree theft by deception and third-degree Medicaid fraud.

OIFP is alleging that Litle’s theft completely depleted her relative’s bank account, leaving the cousin, now 93 years old, unable to pay for nursing home care since 2012. In November of that year, Litle allegedly applied for Medicaid on her cousin’s behalf, but did not explicitly include her personal use of the account as a transfer or gift. Staff from the Camden Board of Social Services allegedly discovered Litle’s use of the money when reviewing the application. Consequently, Litle’s cousin was charged with a Medicaid ineligibility period of 27 months as a penalty for unexplained transfers totaling $214,450 over the course of a five-year period. Litle’s cousin is ineligible for Medicaid benefits until July 2015. As a result, the nursing home has not been fully paid since November 2012 and her account is overdue by an estimated $200,000.

“Because of her alleged selfish crimes, the defendant has left her vulnerable relative with no way to pay for her own care, for which she responsibly saved,” said Acting Attorney General John Hoffman. “Hundreds of thousands of dollars saved over a lifetime have been squandered.”

“Medicaid exists as a safety net for those who need benefits for care when their personal funds have been exhausted, but the defendant allegedly defrauded the program by not acknowledging her alleged theft of her cousin’s nest egg,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “The defendant allegedly stole not only from her cousin, but also from the public by stealing from the taxpayer-funded Medicaid program.”

Litle became her cousin’s Power of Attorney in July 2005. In 2010, her cousin moved to a nursing home in Camden County. Because the cousin had significant assets when she entered the home, she was responsible for paying her own nursing home care and was not eligible for Medicaid benefits. Litle allegedly signed paperwork at the time acknowledging her personal responsibility as the Power of Attorney to pay the nursing home from her cousin’s private funds each month. That agreement allegedly subjected Litle to personal liability for failure to pay her cousin’s nursing home bill, which ran to approximately $8,000 per month.

The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of up to $150,000, while third-degree crimes carry a maximum sentence of five years in prison and a fine of up to $15,000.

Deputy Attorney General Crystal Callahan presented the case to the grand jury. Detective Anthony Iannice coordinated the investigation. Acting Insurance Fraud Prosecutor Ronald Chillemi thanked Ombudsman James W. McCracken and the New Jersey Office of the Ombudsman for the Institutionalized Elderly for referring the matter.

Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

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