Pike County business owner indicted in Medicaid fraud scheme

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Eugene Sisco III

PIKEVILLE, Ky. (WTVQ) – A two-year investigation has led to the indictment of a man who owns several rehabilitation facilities in Pike, Floyd and Harlan counties on a health care fraud scheme, according to Kentucky State Police.

Investigators say Eugene Sisco III is accused of illegally charging patients cash for services that are covered by Medicaid and then fraudulently billing Medicaid, dating back to 2016.

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KSP says Sisco received more than $3 million in cash paid to him by patients seeking treatment for addiction.

Federal Search Warrants were executed on five of Sisco’s businesses in February of this year, according to investigators.

Sisco was indicted on Federal Wire Fraud charges, which carry a maximum of 20-years in federal prison as well as Health Care Fraud, which carries a maximum of ten-years in federal prison, according to State Police.

This was a joint investigation by Appalachia Narcotics Investigations, Diversion Enforcement Task Force ,the FBI HEAT Task Force (All Appalachia HIDTA Task Forces) and the United States Attorneys Office in Lexington.  They were assisted by the Kentucky State Police, Harlan County Sheriffs Office, Harlan Police Department and the Kentucky Office of the Attorney General Medicaid Fraud Control Unit.

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Tom Kenny joined ABC 36 News in June of 2001 as a General Assignment Reporter. A native of Peoria, Illinois, he graduated cum laude with a Bachelor of Arts in Mass Communications from Western Illinois University. He currently anchors ABC 36 News at 5pm, 6pm and 11pm. Tom has more than three decades of experience in broadcast journalism. He is the only broadcast journalist in Lexington television history to be honored with a national Edward R. Murrow Award. Tom was recognized for reporting on a story that gave a rare glimpse inside the secretive world of the Federal Witness Protection Program. He has won an Emmy Award for anchoring and another for investigative reporting, exposing the deceit and potential danger of online diploma mills. Tom has ten other Emmy nominations to his credit for investigative and feature reporting. He has won Associated Press Awards for reporting and anchoring. He has won two Addy Awards for excellence in promotional writing. Tom was the first broadcast journalist in Lexington TV history to be awarded the Silver Circle Award by the National Academy of Television Arts and Sciences. It is one of the highest honors given by NATAS. It recognizes television professionals who have performed distinguished service within the television industry for 25-years or more. Tom was honored for more than his longevity, he was recognized for making an enduring contribution to the vitality of the television industry and for setting high standards of achievement. He was also recognized for giving back to the community as a mentor, educator and volunteer. Tom also has network broadcast experience in radio and television having worked as a sports reporter for ESPN, Sportschannel, NBC Sports and the Breeders’ Cup. He was also the studio host and halftime producer for CBS Radio Sports’ College Football Game of the Week and covered the NFL for One-On-One Radio Sports. Prior to joining WTVQ-TV, Tom was Vice-President of the Houston Astros Minor League baseball team in Lexington. He was part of the original management team that brought professional baseball back to the Bluegrass after a nearly 50-year absence. Tom has lived in Lexington since 1984. In that time, he has been heavily involved with dozens of charity and civic groups, with a special emphasis on helping Veterans. He can be reached at tkenny@wtvq.com. You can also follow Tom on Facebook www.facebook.com/TomKennyABC and Twitter @TomKennyNews. Just click on the links at the top of the page.