Department of Finance & Administration
Mark Emkes, Commissioner

TWO MID-STATE RESIDENTS CHARGED WITH TENNCARE FRAUD

NASHVILLE – Two mid-state residents are charged in separate cases with TennCare fraud involving prescription drugs.

The Office of Inspector General (OIG) today announced the arrest of Marti A. Compton, 50, of Alexandria and Chad W. Peveler, 33, of Gallatin.  Their arrests were assisted by the Smith County Sheriff’s Office and the Smyrna Police Department.

Marti Compton is indicted on four counts of TennCare fraud for using TennCare to obtain the painkillers Morphine and Lortab while planning to sell a portion of the drugs.

Chad Peveler has been indicted by a Rutherford County Grand Jury and charged with two counts of TennCare fraud, two counts of obtaining a controlled substance by fraud and two counts of identity theft.  Allegedly, Peveler presented a forged prescription on two separate occasions for the painkiller Hydrocodone, using TennCare to pay for it. 

“Drug fraud is prevalent across the state – and the nation – but we are not going to allow it to be subsidized by TennCare,” Inspector General Deborah Y. Faulkner said.  “We’re getting outstanding help from local police in identifying these cases.”

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to over $2.5 million paid in restitution and recoupment to TennCare, with a total estimated cost avoidance of over $171 million for the TennCare program, according to latest figures.  To date, over 1,300 people have been charged with TennCare fraud.

Through the OIG Cash for Tips Program established by the Legislature, Tennesseans can get cash rewards for TennCare fraud tips that lead to convictions.  Anyone can report suspected TennCare fraud by calling 1-800-433-3982 toll-free from anywhere in Tennessee, or log on to www.tn.gov/tnoig and follow the prompts that read "Report TennCare Fraud."