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.
