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Owner of Alaska Assisted Living Home Pleads Guilty to Medicaid Fraud

Jeffrey S. Hiett, 54, pleaded guilty to two misdemeanor counts of Medical Assistance Fraud and one count of Reckless Endangerment for conduct that occurred between August 2021 and March 2023. Hiett’s company, 3707 Oregon, LLC, also pleaded guilty to one felony count of Medical Assistance Fraud for conduct that occurred between August 2021 and March 2023. Hiett owned and operated an assisted living home, called 3707 Oregon, providing services to Medicaid recipients. The Medicaid Fraud Control Unit (MFCU) received a referral from the Department of Health after an audit revealed more than $200,000 in overbilling of Medicaid between August 10, 2021, and March 27, 2023. Through the investigation, MFCU Investigator Scott Wright discovered that during this time frame, Hiett had overbilled Medicaid for $177,722.22 worth of services for which he was not entitled. Hiett had also accepted a Medicaid client who he could not adequately care for, due to insufficient staffing at the ALH. Hiett was sentenced to jail time of 270 days with 180 days suspended, and informal probation for three years. Heitt’s company, 3707 Oregon, LLC, was sentenced to a fine of $5,000. As part of the plea agreement, Hiett and 3707 Oregon, LLC will pay $177,722.22 in restitution to the Alaska Department of Health. They will also be excluded from the Medicaid Program for three years.