(CORPUS CHRISTI, Texas) - A Corpus Christi area psychologist has been indicted for allegedly defrauding the Texas Medicaid Program and Blue Cross and Blue Shield of Texas, Inc., United States Attorney Don DeGabrielle and Texas Attorney General Greg Abbott announced today.

Sam Smith Hill III, 61, a licensed psychologist with a professional office in Corpus Christi, was indicted by a federal grand jury on March 26, 2008. The indictment is the result of a three and a half year joint investigation conducted by the FBI and the State of Texas Office of Attorney General--Medicaid Fraud Control Unit, Corpus Christi Division.
Following his indictment, a warrant issued for Hill’s arrest. Hill was served with the warrant and taken into federal custody upon surrendering today to investigating agents. Hill is expected to make an initial appearance before U.S. Magistrate Judge Janice Ellington at 1:30 p.m. today during which the issue of bond is expected to be decided.

The indictment alleges that between Jan. 2001 and Feb. 2008, Hill devised and executed a scheme in which he billed Medicaid and Blue Cross and Blue Shield of Texas through the Federal Employees Health Benefits Program for psychological testing conducted by employees and interns in his office, none of whom were licensed psychologists. The Medicaid and Blue Cross and Blue Shield rules prohibited a psychologist from billing for psychological services not personally provided by the licensed psychologist. Hill is charged with 15 counts of health care fraud accusing him of fraudulently billing Medicaid and Blue Cross Blue Shield on 15 separate occasions during the relevant time period for services not performed by him.

Each of the 15 counts of health care fraud carries a maximum statutory penalty of not more than 10 years imprisonment and not more than a $250,000 fine, upon conviction.

This case will be prosecuted by Special Assistant U.S. Attorney Rex G. Beasley and Assistant U.S. Attorney Julie Hampton.

Indictments are formal accusations of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.