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Two Dyer residents have been indicted by a federal grand jury for allegedly overbilling Illinois Medicaid by $4 million for services they did not actually provide to clients at a youth counseling center they own in Matteson, Illinois.

Summer Matheson, 41, and Terrence Ewing, 57, co-owners of Laynie Foundation Inc., fraudulently billed Illinois Medicaid for mental health services that were not provided as claimed and sought payment for non-reimbursable activities, such as internal case reviews, staff training, clinical supervision and recordkeeping, according to the indictment.

Matheson additionally is accused in the indictment of attempting to cover up the alleged fraud by directing foundation personnel to backdate and falsify patient records to make it appear that a licensed practitioner had reviewed and approved certain mental health services.

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Foundation supervisor Richard Grundy, 34, of Chicago, also was charged with health care fraud for participating in the scheme to bill Illinois Medicaid for services that were not provided, the indictment states.

In addition to potential prison terms, the federal government is asking that Matheson and Ewing together be made to forfeit $4 million in allegedly ill-gotten gains, and Grundy be subject to a monetary judgment of $2.5 million, if they are convicted.

A trial date has not yet been set.

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Financial Affairs Reporter

Dan has reported on Indiana state government for The Times since 2009. He also covers casinos, campaigns and corruption.