Convicted Psychiatric Nurse with Revoked License Arrested Again

Convicted Psychiatric Nurse with Revoked License Arrested Again

An Arizona psychiatric nurse (Laura Lynn Bell) was first caught treating Veterans Affairs (VA) patients and defrauding the VA and other insurance companies in December 2017, and then found to be continuing her fraudulent behavior in July 2018. It was discovered she had submitted fraudulent claims for over $800,000.  Bell had her license as a nurse revoked in November 2018. Investigators report that “over a 6-month period she submitted over 2,000 separate insurance claims using 73 former patient identities.” She was sentenced in August 2018 to three years of probation after pleading guilty to the fraud charges.

Recently, she was caught trying to get another license by submitting fake documents. The woman who is from Thailand also uses the last name of Smith. Using a fake driver’s license, she tried to get transcripts from the University of South Alabama. The school reportedly received a forged court document showing a name change from Smith to a third name—Alicia Houston. She wanted the university to move transcripts from Laura Lynn Smith to Alicia Houston in an effort to renew her nursing license, which had been revoked in several other states in addition to Arizona.

Investigators found the forged documents and other papers with the name Alicia Houston in a search of the woman’s home.

She was released from custody.

Compliance Perspective

Failure by a healthcare provider to verify licenses and certifications of its nursing staff or to perform background checks to determine if a prospective employee has been convicted of criminal behavior, making them ineligible to work in a healthcare facility receiving government funds, may be considered employment of unqualified nursing staff and provision of substandard quality of care, in violation of state and federal regulations.

Discussion Points:

  • Review policies and procedures for verifying the licenses and certifications, performing background checks, and reviewing state and federal lists of excluded individuals and debarred contractors for applicants prior to their being employed.
  • Train staff about state and federal regulations for notifying their employer of revoked licenses and criminal convictions. Make staff aware of their responsibility to report, either to their supervisor or through the Hotline, any employee they suspect may have committed fraud or other criminal acts.
  • Periodically audit employee files to ensure everyone has appropriate screening, licensure, and certification documentation in place.  

FRAUD MODULE 12 – EMPLOYEE LICENSING