A federal grand jury has indicted embattled State Representative Tricia Derges on a 23-count superseding indictment that includes three new charges of COVID-19 fraud.
The grand jury is accusing Derges of defrauding Greene County over funds received from the CARES Act.
The indictment says that Derges received $296,574 in funds from the CARES Act through Greene County for testing she claimed was done through Lift Up Springfield, a clinic that serves the poor, homeless, and uninsured in the area. In reality, no COVID-19 testing was conducted by LIft Up, as their facility closed at the start of the pandemic in March 2020 and did not reopen until June 2020.
Derges sought CARES Act funding for COVID-19 testing that had been provided, and paid for by patients, at her for-profit Ozark Valley Medical Clinic. Derges asked for $882,644 overall from the CARES Act Relief Fund for Lift Up, claiming they needed reimbursement of $379,294 in testing and related expenses, and $503,350 in funding for future expenses.
When Derges provided her application to Greene County for money from the CARES Act Relief Fund, she submitted invoices from Dynamic DNA that she claimed were expenditures from the non-profit Lift Up, when in reality they were for testing that was done and paid for at Ozark Valley Medical Clinic (OVMC.)
The indictment says Derges had received payments of around $517,000 from patients for COVID-19 testing at OVMC, or an average of $167 per sample for testing service. Derges in December submitted more invoices to Greene County in support of the Lift Up application, claiming a new total of $589,143 for the tests. OVMC had been paid nearly $1 million by clients, patients, and patient’s employers for the COVID-19 tests.
In December, the Greene County Commission approved Lift Up receiving $296,574 in CARES Act funding based on the fraudulent application. Derges deposited the money into Lift Up’s bank account and then transferred the funds to OVMC’s account.
In addition to the new indictment keeping all the previous counts of wire fraud, illegal distribution of controlled substances, and making false statements, the new indictment includes a forfeiture allegation, requiring Derges to forfeit to the government any property that came from the fraud scheme, including money.
Derges’ attorney, Albert Watkins, told KWTO that the government is misunderstanding medical coding and their actions will have a negative impact on the community.
“The government is taking what it believes to be an appropriate course of action against my client,” Watkins said. “Unfortunately, it demonstrates a wholesale absence of knowing due diligence on the part of the government on the part of nuanced subject matter. The fact is the city of Springfield has been blessed with Dr. Derges, and other individuals like Dr. Derges, who are skilled, trained, educationed, and committed to a calling to provide healthcare to the poor, the indigent, and tens of thousands of others of the course of years who have not been able to navigate the healthcare system that provides those of us with insurance and money good health care.”
“The series of missteps that have been demonstrated by the federal government in this case, while I do not believe they are born of nefarious sources, I believe they fairly demonstrate the government is not taking a three dimensional look at what has really happened and what some certain medical terms really mean, nor are they familiar apparently with the code and federal rules that govern healthcare providers including assistant physicians.”
Watkins was adamant that Derges will not be stepping down from her seat in the state house.
“Under no circumstances,” Watkins said. “She remains deeply committed not only to her calling, but her duties as an elected official. Somebody who was elected by the public. This will not permit this to sway her from pursuing and discharging her duties to her constituents.”
Watkins said they want to make sure this trial is open so the public can understand the facts.
“We are in a position of wanting to make sure that this trial is public and that a great deal of attention is given to the horrific collateral damage that occurs when the appropriate due diligence is not done by people in positions of authority to initiate and prosecute charges of this nature,” Watkins said.
A spokeswoman for the Greene County Commission said they cannot comment on pending litigation.
We have reached out to multiple officials for comment and will update this story if they respond.