FRANKFORT, Ky. — A Louisville clinical social worker has pleaded guilty to orchestrating a multimillion-dollar Medicaid fraud scheme that prosecutors say billed for mental health services never provided — and then used the proceeds to buy luxury cars, including a Mercedes-Benz AMG G63.
Jason C. Ocean, owner of Ocean Behavioral Healthcare, admitted in a Thursday plea agreement that from 2021 to 2022, he worked with two Louisville-based companies — Grace N Mercy Support Services and Grace N Mercy Residence — to place the names of Medicaid members on their patient lists even though those people had not received any treatment. According to his plea agreement, Ocean then authorized false claims to Kentucky’s Medicaid Managed Care Organizations, resulting in more than $9 million in improper payments.
Prosecutors said Ocean, the only licensed clinical social worker at his company, contracted with Grace N Mercy to supposedly provide behavioral health services and peer counseling supervision. In reality, court records say, many of the listed patients had never met him or the Grace N Mercy staff — and some, like a member identified as “M.B.,” were deceased when the bills were submitted.
In one example, the plea agreement states, Ocean caused claims to be filed for a patient named “B.F.” for February 2022, knowing no services had been provided. Grace N Mercy Residence was paid $4,725 for that month alone. In another case, claims for “J.G.” between July 2021 and October 2022 brought in about $172,000, even though the person had no connection to the companies.
The court filings say Ocean used part of the fraud proceeds to fund personal purchases. On Feb. 4, 2022, he withdrew $36,000 from a bank account in Ocean Behavioral Healthcare’s name and bought a Mercedes-Benz AMG G63. Separate federal seizure warrants show authorities later took possession of that vehicle along with a 2018 Rolls-Royce Dawn, a 2022 Bentley Flying Spur, a 2004 Lamborghini Gallardo, a 2019 Cadillac XT4, and high-end Rolex and Patek Philippe watches.
Ocean pleaded guilty to health care fraud and money laundering. Each charge carries a potential sentence of up to 10 years in prison, a $250,000 fine or twice the gross gain or loss, and up to three years of supervised release. His sentencing is scheduled for Dec. 3 in Frankfort.
Ocean’s co-defendant, April R. Robertson, pleaded guilty last month to conspiracy to commit health care fraud and money laundering. She is set to be sentenced Nov. 4.
Both cases were brought in the Eastern District of Kentucky, where the Department for Medicaid Services is headquartered in Frankfort. Prosecutors said that is where the fraudulent claims were ultimately processed and paid.
