Tuesday 15 November 2016

Former Newcastle Woman on $233M Fraud Charges

BY TANYA DU PREEZ

A former Newcastle woman is facing over 35 years in a United States jail after she was accused of being involved in an insurance fraud of up to $233 million, one of the largest in Californian history.

Ms Kirsten Wallace, who was chief financial officer of the Community Recovery company which ran about 20 rehabilitation centres, is alleged to have been involved in "an elaborate conspiracy" to defraud patients and insurers.

Prosecutors alleged she stole patient identities, bought health insurance policies for patients without their knowledge and continued to bill insurance companies for treatment after the services were completed.

Ms Wallace lived in Newcastle for seven years, living in Carrington and Mayfield before moving to the US about 10 years ago with her young daughter.


Kirsten Wallace allegedly committed a $233 million insurance fraud (Source: New York Daily News)