Mississippi Woman Ordered to Repay the State More Than $250,000

NASHVILLE, Tenn. – A Mississippi woman is convicted in criminal court, after she was accused of fraudulently reporting that she lived in Tennessee and misrepresenting her household information – all in an effort to appear eligible for TennCare and have state taxpayers pay for her healthcare.

The Office of Inspector General (OIG) today announced the conviction of Cheri Cavitt, 36, of Southaven, Mississippi.  In a court hearing on a Class A theft of property charge – which involves more than $250,000 - she pleaded guilty to a class C theft of property charge. She was given ten years of judicial diversion and ordered to pay $258,303.64 in restitution to TennCare.  This is the highest restitution ordered since the OIG began investigating TennCare fraud in 2004.

“Lying about one’s residence in order to receive TennCare benefits is a crime that can yield long-term criminal consequences,” Inspector General Kim Harmon said.  “We work diligently to preserve TennCare benefits for people who are eligible for the program and anyone who has information about someone abusing the system can reach out to us anonymously by phone or on the web.”

Cavitt was arrested May 18, 2018, and charged in Shelby County with TennCare fraud and felony theft of property exceeding $250,000. Officials say she reported to Tennessee officials that she resided in Tennessee – but she actually lives in Southaven, Mississippi. Authorities also report she failed to disclose her marriage, also to appear eligible for TennCare. District Attorney General Amy T. Weirich prosecuted this case.

Judicial Diversion is a type of one-time probation for eligible offenders who plead guilty. It’s typically offered to people without prior felony history; people in the program must participate in probation, pay court costs and are required to maintain good conduct. Violation of the agreement can mean the order is revoked and replaced with a prison sentence.

The OIG, which is separate from TennCare, began full operation in February 2005 and has investigated cases leading to more than $3 million being repaid to TennCare, with a total estimated cost avoidance of more than $163.6 million for TennCare, according to latest figures. To date, 3,112 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/oig/ and follow the prompts that read “Report TennCare Fraud.”