Jonathan D. Ross U.S. Attorney | U.S. Attorney for the Eastern District of Arkansas
A federal grand jury has indicted Krameelah Banks, a psychologist from Little Rock, for allegedly defrauding Medicare and Arkansas Blue Cross Blue Shield. The indictment includes twenty-three counts of wire fraud, seven counts of making false statements in connection with health care, one count of lying to the FBI, and one count of aggravated identity theft.
According to the U.S. Attorney for the Eastern District of Arkansas, Jonathan Ross, along with Alicia Corder from the FBI’s Little Rock Field Office and Jason Meadows from the U.S. Department of Health and Human Services’ Office of Inspector General in Dallas, Banks is accused of fraudulent billing practices through her business, Arkansas Behavioral Center (ABC).
The indictment states that while Banks did provide ongoing psychotherapy to some patients, most individuals were seen only once for pre-surgical psychological evaluations. Authorities allege that between 2021 and 2023, Banks submitted bills for thousands of hours of psychological services that were never provided. The charges assert she regularly billed Medicare and Blue Cross for continued therapy sessions in the names of patients who had only a single visit as referrals. These actions reportedly resulted in insurance companies losing more than $500,000.
The indictment further claims that Banks billed for services at ABC while she was vacationing out-of-state and sometimes charged for more than 24 hours’ worth of services on a single day. It also alleges she claimed to have conducted over 130 sessions with several patients who had already died.
Additionally, when questioned about disputed claims, Banks allegedly created fictitious records and reused nearly identical entries when responding to both Medicare and Blue Cross inquiries. The indictment accuses her of later misleading federal investigators by attributing any excessive billing to her online calendaring software.
"An indictment contains only allegations. The defendant is presumed innocent until proven guilty," according to the official statement.
