Audit Shows NC Insurance Program Workers Committed Fraud

RALEIGH, N.C. (AP) - An audit shows that employees including the manager of an insurance program for state workers misappropriated about $525,000 by submitting fraudulent receipts for reimbursement over a three-year period.

The News & Observer of Raleigh reported that the audit shows amount of money is larger than previously disclosed in indictments against the long-time manager Chakrapani Tademeti of Raleigh.

Tademeti has been charged with obtaining property by false pretense and larceny by an employee. He's accused of submitting false claims for travel, rent, electronic equipment and other expenses.

The State Bureau of Investigation says no other employees have been charged.

A legislative committee called for an audit of NC Flex after Tademeti's arrest last October. NC Flex lets state employees set aside pre-tax money for  uninsured medical costs and day care.

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