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Case: 3:19-cr-00034-GFVT-MAS Doc #: 1 Filed: 08/01/19 Page: 1 of 8 - Page ID#: 1

Eastern District of Kentucks


UNITED STATES DISTRICT COURT
Fll,ED .
EASTERN DISTRICT OF KENTUCKY
CENTRAL DIVISION
AUG O1 2019
FRANKFORT AT LEXINGTON
ROBERT R. CARR
CLERK U.S. DISTRICT COUR1
UNITED STATES OF AMERICA

V. INDICTMENT No. 3: 19-c-12--3z/-GFvr

DIANA L. BAKER

* * * * *
THE GRAND JURY CHARGES:

INTRODUCTION

1. At all relevant times, the Kentucky Commission for Children with Special

Health Care Needs (hereafter, "Commission"), was an agency within the Kentucky

Cabinet for Health and Family Services, and as such, is an agency of State government,

within the purview of 18 U.S.C. § 666(a)(l) and (d)(2).

2. It is the function of the Commission to enroll children who have special

health care needs (hereafter "Patients") into a state and federally funded program, and

thereafter provide money and other services to them and their parents or guardians to

address those special needs. On some occasions, these payments consist of

reimbursement to the Patients' parents or guardians for approved purchases. On other

occasions, the payments are made directly to third party vendors who have provided the

Patients with authorized goods and services.

3. At all relevant times, the process by which the State paid for the authorized
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expenses of the Patients involved a request by the parents or guardians for payment,

approval by members of the Commission, the submission of a requisition package by the

Commission to the Kentucky State Treasurer (hereafter "Treasurer"), and the issuance of

a check by the Treasurer to the appropriate entity.

4. In any period of twelve consecutive months during the time covered by this

Indictment, the Commission and the State received more than $10,000 of funds under

federal programs and grants, including, among others, Maternal and Children Health

Services Block Grants; Early Hearing Detection, Diagnosis and Intervention Track

Grants; Family Professional Partnership Grants; and, Kentucky Infants Sound Start

program, and, as such, was within the purview of 18 U.S.C. § 666(b ).

5. At all relevant times, DIANA L. BAKER was an Administrative Branch

Manager for the Commission. As such, she was an agent of State government within the

purview of 18 U.S.C. § 666(a)(l) and (d)(l). It was part of her duties to review and

approve the aforesaid requisition packages.

COUNT 1
18 u.s.c. § 1341

6. The allegations contained in paragraphs 1-5 are restated and incorporated

herein by reference.

7. From on or about a date in March 2007, until on or about a date in June

2018, at Frankfort, in the Eastern District of Kentucky, and elsewhere,

DIANA L. BAKER

devised and intended to devise a scheme and artifice to defraud and to obtain money from
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the State of Kentucky by means of false and fraudulent pretenses, representations, and

promises, involving the following manner and means:

MANNER AND MEANS

8. It was part of the scheme to defraud that DIANA L. BAKER would use

her authorized access to the Commission's computerized requisition program to generate

fictitious requisition packages, which purported to authorize payment by the State of

expenses of the patients served by the Commission. These fictitious requisition packages

purported to request payment to third party vendors or to reimburse parents or guardians

for patient services or expenditures. In reality, these fictitious requisition packages

sought payment for disguised personal expenses of DIANA L. BAKER.

9. It was part of the scheme to defraud that DIANA L. BAKER would cause

the aforesaid fictitious requisition packages to be submitted to the Treasurer in Frankfort,

Kentucky, where, in the due course of business, the Treasurer would issue a check to pay

the fraudulently approved expenditure.

THE MAILING

10. On or about the 21 st day of June, 2018, and in order to execute the aforesaid

scheme to defraud,

DIANA L. BAKER

knowingly caused to be delivered by mail, according to the directions thereon, mail

matter, to wit, an envelope containing a check payable to Kevin Bratcher in the amount

of$2,975.00 from the office of the Treasurer in Frankfort, Kentucky to the Commission

office at address,
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Commission For Children With Special Healthcare Needs


310 Whittington Pkwy #200
Louisville, KY 40222-4912

All in violation of Title 18 U.S.C. § 1341.

COUNT2
18 U.S.C. § 1028A(a)(l)

11. The allegations contained in paragraphs 1-5, 8, and 9, are restated and

incorporated herein by reference.

12. On or about a date in mid-June, 2018 at Frankfort, in the Eastern District of

Kentucky, and elsewhere, during and in relation to the felony violation set out in Count

One of this Indictment,

DIANA L. BAKER

did knowingly use, without lawful authority, means of identification of another person,

that is the name of Kevin Bratcher, Leitchfield, Kentucky, in connection with a

requisition package submitted to the office of the Treasurer.

All in violation of Title 18 U.S.C. § 1028A(a)(l).

COUNT3
18 U.S.C. § 666(a)(l)(A)

13. The allegations contained in Paragraphs 1-5, 8, and 9, are restated and

incorporated herein by reference.

14. In the period of twelve consecutive months that were calendar year 2015, at

Frankfort, in the Eastern District of Kentucky and elsewhere,

DIANA L. BAKER

being an employee and agent of a State government that received more than $10,000 of
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federal funds in that same twelve month period, embezzled, stole, and obtained by fraud

over $5,000 of money that was in the care, custody and control of the State, by creating

fake and fictitious requisition packages and causing the Treasurer to issue Treasury

checks to Norton's Healthcare for $2,386.58 and to Capital One credit card (account

ending 2558) for $5,427.51, all for payment of her personal expenses.

All in violation of Title 18 U.S.C. § 666(a)(l)(A).

COUNT4
18 U.S.C. § 666(a)(l)(A)

15. The allegations contained in Paragraphs 1-5, 8, and 9, are restated and

incorporated herein by reference.

16. In the period of twelve consecutive months that were calendar year 2016, at

Frankfort, in the Eastern District of Kentucky and elsewhere,

DIANA L. BAKER

being an employee and agent of an agency of State government that received more than

$10,000 of federal funds in that same twelve month period, embezzled, stole, and

obtained by fraud over $5,000 of money that was in the care, custody and control of the

State, by creating fake and fictitious requisition packages and causing the Treasurer to

issue Treasury checks to Ellis and Badenhausen for $274.78; to Comenity Bank credit

card (account ending 3004) for $322.77, $1,024.96, and $1,463.61; to JPMorgan Chase

(account ending 1159) for $1,266.94; and payment to U.S. Bank credit card (account

ending 7929) for $2,755.78, all for payment of her personal expenses.

All in violation of Title 18 U.S.C. § 666(a)(l)(A).


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COUNTS
18 U.S.C. § 666(a)(l)(A)

17. The allegations contained in Paragraphs 1-5, 8, and 9, are restated and

incorporated herein by reference.

18. In the period of twelve consecutive months that were calendar year 2017, at

Frankfort, in the Eastern District of Kentucky and elsewhere,

DIANA L. BAKER

being an employee and agent of an agency of State government that received more than

$10,000 of federal funds in that same twelve month period, embezzled, stole, and

obtained by fraud over $5,000 of money that was in the care, custody and control of the

State, by creating fake and fictitious requisition packages and thereby causing the

Treasurer to issue Treasury checks to Comenity Bank credit card (account ending 3004)

for $3,840.74, $3,102.53, and $1,563.20; to Grayson Medical Centers for $686.83; to

Ellis and Badenhausen for $469.39; to Jewish Healthcare for $154.50; to Comenity Bank

credit card (account ending 0355) for $3,428.00; to Comenity Bank credit card (account

ending 8081) for $2,360.92; and payment to JPMorgan Chase (account ending 1159) for

$1,290.00, all for payment of her personal expenses.

All in violation of Title 18 U.S.C. § 666(a)(l)(A).

COUNT6
18 U.S.C. § 666(a)(l)(A)

19. The allegations contained in Paragraphs 1-5, 8, and 9, are restated and

incorporated herein by reference.

20. In the period of twelve consecutive months that were calendar year 2018, at
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Frankfort, in the Eastern District of Kentucky and elsewhere,

DIANA L. BAKER

being an employee and agent of an agency of State government that received more than

$10,000 of federal funds in that same twelve month period, embezzled, stole, and

obtained by fraud over $5,000 of money that was in the care, custody and control of the

State, by creating fake and fictitious requisition packages and thereby causing the

Treasurer to issue Treasury checks to Comenity Bank (credit card account ending 8081)

for $2,779.00 and to Kevin Bratcher for $2,975.00, all for payment of her personal

expenses.

All in violation of Title 18 U.S.C. § 666(a)(l)(A).

A TRUE BILL

FOREPERSON

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ROBERT M. DUNCAN, JR. •
UNITED STATES ATTORNEY
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PENALTIES

COUNT 1: Not more than 20 years imprisonment, $250,000 fine, and 3 years
supervised release.

COUNT 2: 2 years imprisonment, mandatory consecutive sentence, $250,000


fine and 1 year supervised release.

COUNTS 3-6: Not more than 10 years imprisonment, $250,000 fine, and 3 years
supervised release.

PLUS: Mandatory special assessment of $100 per count.

PLUS: Restitution, if applicable.