Man imprisoned, told to pay restitution for Medicaid fraud

September 17, 1990

A Baltimore man has been sentenced to three years in prison and ordered to pay restitution of $249,000 for his involvement in a scheme to defraud the state's Medicaid program.

An investigation by the Medicaid Fraud Control Unit found that Sherman L. Snell received $249,003 after submitting false claims. Snell and Steven Herlich, the former owner of the Medicine Shoppe in Baltimore, received more than $450,000 from Medicaid after submitting the claims.

Snell forged prescriptions and submitted invoices to the state's medical assistance program from 1986 to April 1989. He also persuaded Medicaid recipients to lend him their Medicaid cards needed to submit the phony prescription invoices.

An investigation was ordered after the Maryland Department of Health and Mental Hygiene noticed suspicious billing patterns.

Snell had pleaded guilty to one count of Medicaid fraud and two counts of failing to file income tax returns.

He was sentenced Wednesday to five years in prison with two years suspended, and five years of probation.

Herlich is serving an 18-month sentence for Medicaid fraud and is making restitution of $290,000.

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