Federal authorities have seized a parcel of land in Ellisville in connection with the recent indictment of seven people who were indicted for alleged Medicaid and Medicare fraud.

According to a 13-count indictment dated Oct. 20 and filed in the United States District Court for the Southern District of Mississippi Hattiesburg Division, the parcel of land at 607 Moselle Oak Grove Road in Ellisville, owned by Theddis Marcel Pearson and Telandra Gail Jones must be forfeited to the United States.

Shelia Wilbanks of the U.S. Attorney’s Office in Jackson said “the indictment alleges that (the land) was purchased with proceeds of the criminal offenses charged in the indictment.”

Along with the Ellisville property, authorities are seeking forfeiture of properties in Cedar Hill and Spring, Texas. Authorities have also seized more than $3.6 million from various accounts of the defendants.

In addition to the three owners of the medical clinic, four doctors who once worked as medical directors of Statewide Physical Medicine Group — Drs. Colie Crutcher, Patrick Arnold, Cassandra Thomas and Dunk Ellis III — were also indicted. All seven defendants are scheduled to appear in the U.S. District Court in Hattiesburg on Nov. 4.

The indictment charges that:

Beginning in or around June 2000, and continuing to in or around January 2005, the defendants and other persons known and unknown to the Grand Jury, knowingly and willfully entered into an agreement and a conspiracy with each other to defraud Medicare and Medicaid by obtaining and aiding each other to obtain the payment of false, fictitious and fraudulent claims.

The defendants represented that the services billed for were provided by a physician, or under the direct supervision of a physician, when in fact, they were not.

The defendants filed claims with Medicare and Medicaid that greatly exceeded the actual time spent with the patients by the persons providing the treatments and that the defendants and others would routinely bill to Medicare and Medicaid between five and nine hours of services per treatment session, when in fact, the treatment session would last about 45 to 90 minutes.

The four defendants, who served as medical directors, would order a quantity of medical treatment for patients which they knew, or should have known, could not have been completed within the 45 to 90 minutes that each patient was routinely treated for. Also, they would order medical treatments for patients which they knew, or should have known, Statewide employees were not trained or other wise qualified to render.

All seven defendants, as well as other unindicted coconspirators, would intentionally represent to Medicare beneficiaries that they would not be charged for the co-payment that Medicare required beneficiaries to pay, and providers to collect, for services provided by Statewide.

During the conspiracy, Pearson Jones and Williams billed Medicare and Medicaid for more than $39 million in services in Mississippi during the alleged conspiracy. The government agencies paid out $18 million. It is not clear how much of that was obtained by allegedly fraudulent billing.

The 19-page indictment also alleges that Pearson and Jones transferred at least $2 million through several bank accounts to make it appear they were receiving money from a different source, court records said. The money allegedly was transferred through bank accounts in the names of Statewide Rehabilitation Services Inc., and Premier Dialysis Inc.

When contacted by The Associated Press at Premier Dialysis in Duncanville, Texas, Jones said she needed to talk to her attorney before commenting. She didn’t return additional calls.

According to the indictment, Jones wrote a check from Premier Dialysis’ account to Pearson for $1 million and deposited the other $1 million into her bank account.

Pearson did not immediately respond to a message left at a company called TMP in Houston, Texas. TMP is associated with Southern Dialysis Group, which according to the company’s Web site, serves patients around Belzoni and Fayette.

Pam Weaver, a public information officer for the Mississippi Secretary of State’s office, said Southern Dialysis is not a registered Mississippi company. She also said there is no record of a company called Statewide Physical Medicine Group , Inc. ever incorporating in Mississippi. A phone number for the facility in Moss Point has been disconnected.

The Associated Press contributed to this article.