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Former Georgia insurance commissioner charged with running health care fraud scheme

May 31, 20222 min read Sylvia

A federal grand jury has indicted a former Ga insurance policy commissioner on rates of jogging a health treatment fraud and cash laundering scheme.

John W. Oxendine, 60, of Duluth, faces federal charges of conspiracy to commit well being treatment fraud and conspiracy to dedicate revenue laundering. The previous insurance commissioner “conspired to obtain kickbacks for needless genetic and toxicology lab tests, and utilized his coverage organization to disguise people kickbacks,” U.S. Legal professional Ryan K. Buchanan claimed in an announcement.

The feds allege Oxendine conspired with Dr. Jeffrey Gallups and some others to post bogus coverage claims for “medically pointless” checks and that doctors linked with Gallups’ exercise had been pressured to get the assessments from a Texas lab. The feds say the lab firm agreed to spend Oxendine and Gallups 50% of the internet earnings for eligible specimens Gallups’ observe submitted to the lab enterprise.

The lab enterprise submitted statements for extra than $2.5 million for assessments Gallups’ apply ordered. The insurance businesses paid out the lab more than $600,000.

According to a news launch, the lab enterprise paid $260,000 in kickbacks by way of Oxendine’s insurance products and services company. The feds say Oxendine made use of a part of the dollars to pay back Gallups’ debts, earning a $150,000 charitable contribution and paying $70,000 in attorney’s charges.

“These allegations describe a person who was far more inspired by particular greed than their obligation to offer correct and necessary treatment to clients,” Keri Farley, unique agent in cost of the FBI’s Atlanta workplace, mentioned in an announcement. “The FBI, together with our associates, will proceed to examine healthcare fraud to make sure these men and women who willingly defraud the American individuals are brought to justice.”

In October, Gallups, the founder, owner, healthcare director and past CEO of Milton Corridor Surgical Associates, also regarded as The Ear, Nose & Throat Institute, pleaded guilty to health and fitness care fraud.

In December, Gallups agreed to pay a lot more than $3 million to solve allegations of violating the Bogus Statements Act. According to a news release, an additional enterprise, Entellus Healthcare, agreed to spend $1.2 million as element of the settlement.

Oxendine served as insurance coverage commissioner from 1995 to 2011.

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