Federal grand jury indicts hearing aid dealer

Posted: Friday, May 18, 2001

ANCHORAGE (AP) -- A federal grand jury has indicted a Juneau hearing aid dealer on fraud and money laundering charges.

Kenneth Klepinger is charged with 41 counts of health care fraud, one count of mail fraud and 14 counts of money laundering.

Assistant U.S. Attorney Daniel Cooper said Klepinger used six methods to defraud the state's Medicaid program of more than $120,000.

The indictment charges that Klepinger charged the program for options on hearing aids that were not delivered to customers.

Klepinger is accused of charging Medicaid for fittings and other services that he did not perform, as well as charging for hearing aids that were not delivered.

He also is accused of charging Medicaid for hearing aids during periods when they were not eligible for reimbursement and for falsifying dates.

The maximum sentence for conviction on all charges is 35 years in prison and fines of a million dollars.

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