* Dr. William R. Greco, an obstetrician-gynecologist and former administrator of Magnolia Gardens Nursing Home in Lanham who was convicted more than a year ago of six counts of Medicaid fraud, remains free pending appeal, according to Gary Bair of the Maryland attorney general's Medicaid fraud unit.

The March 1984 conviction stemmed from Greco's claims for reimbursement for work done on his private medical office, residences, beach house and a daughter's condominium. Evidence showed he claimed these as nursing home costs.

After a four-month trial that involved some 60 witnesses and more than 700 documents, Baltimore Circuit Judge Arrie W. Davis found that Greco had knowingly made fraudulent claims to the Medicaid program in 1978, 1979 and 1980 for nearly $100,000, the amount paid by Magnolia Gardens to a contractor. Magnolia Gardens received some reimbursement based on the claims filed.

Greco was sentenced on April 6, 1984, to five years in prison, with all but 18 months suspended, the time to be spent in a work-release program of community service. A $60,000 fine was also imposed. On April 23, 1984, the community service requirement was modified and Greco was ordered, in addition to the fine, to make a restitution payment of $50,000.

The argument of Greco's appeal is scheduled for October.

Meanwhile, Greco has been barred by the federal government from receiving Medicare reimbursements for 10 years.

Upon his felony conviction, according to Larry Payne, state health department compliance director, Greco was automatically barred forever from receiving any Medicaid funds.

Greco could not be reached for comment.