7 In Kansas City Area Charged With Fraud

By: Associated Press
By: Associated Press

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Thursday, December 13, 2012

Six Kansas City municipal employees and one Jackson County worker are facing federal wire fraud charges, accusing them of using an insurance benefit program to receive thousands of dollars in gift cards.

A law enforcement official told The Associated Press on Thursday about the grand jury indictment, which was handed down Wednesday.

Prosecutors say the defendants misused a Blue Cross and Blue Shield of Kansas City benefit program that awarded points for participating in healthy activities; the more strenuous the exercise, the higher the point values.

Prosecutors say defendants got points for reporting children as young as 1 were running triathlons.

The defendants allegedly received gift cards of up to $250 by redeeming falsely reported points. One is accused of compiling 383 gift cards worth more than $185,000.

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