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Ex-Vernon Business Owner Admits Guilt in $1.3M Healthcare Fraud Scheme

A woman formerly from Connecticut, Jacqueline Pelphrey, has pleaded guilty to healthcare fraud after defrauding insurers of nearly $1.3 million by submitting false claims for custom breast prostheses that were never ordered or delivered. Pelphrey operated a business, Women’s Health Resources Inc., in Vernon, which specialized in selling post-mastectomy products and filed claims on behalf of customers.

Beginning in August 2018, she started claiming payments for prostheses that were not provided, affecting Medicaid and other insurance programs. The healthcare fraud charge could lead to a maximum prison sentence of 10 years. Sentencing is set for December 29, with Pelphrey currently out on a $10,000 bond. The investigation was carried out by the U.S. Department of Health and Human Services and the FBI.

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