Psychologist enters plea in fraud case

Via the Jackson Sun

Jackson psychologist Dr. Lorne Allan Semrau entered a not guilty plea in federal court Wednesday after he was indicted Monday on fraud charges, said Semrau's Covington-based attorney J. Houston Gordon.

A federal grand jury indicted Semrau, charging him with submitting $4 million worth of false and fraudulent claims to defraud health care benefits programs such as Medicare and Medicaid in Tennessee and Mississippi, according to a press release from U.S. Attorney David Kustoff on Tuesday.

Gordon on Wednesday said Dr. Semrau had no comment on the case.
"Dr. Semrau entered a not guilty plea in federal court,'' he said. ''We will let the process work its way. That's why we have courtrooms and juries."

Semrau, a native of Canada and a resident of Madison County, studied at Vanderbilt University. He is owner, president and CEO of Superior Life Care Services and Foundation Life Care Services.

Semrau's wife, Kat, owns The Painted Lady and Art Under a Hot Tin Roof in downtown Jackson.

When The Jackson Sun contacted Kat Semrau at home Wednesday evening, she referred all questions regarding her husband's case to their attorney.

The indictment charges Lorne Semrau with laundering money in order to continue the billing scheme.

According to the indictment, Semrau contracted with nursing homes in Tennessee and Mississippi to provide medication and mental health services to residents.

Semrau then allegedly contracted with psychiatrists to perform the services pursuant to the nursing home contracts, a press release said.

The indictment states that Semrau then implemented a billing scheme to defraud Medicare, Medicaid and others by submitting, through his companies, claims for services that were not provided by the physicians and claims that Semrau knew to be false.

The indictment further says that between 1999 and 2005 Semrau submitted fraudulent billings to health care benefit programs in excess of $4 million.

The health care charges carry a maximum penalty of 10 years imprisonment.

This indictment follows an investigation by the U. S. Attorney's Health Care Fraud Task Force in the Western District of Tennessee, the release said.