A former Georgia insurer has been charged with federal charges relating to the alleged health system.
Last Tuesday, a federal grand jury charged John Oxendin with a plot to attempt medical fraud and a plot to commit money laundering. According to online court records, he pleaded not guilty during his first court appearance on Friday.
“The indictment alleges that Oxendin colluded to obtain kickbacks for unnecessary genetics and toxicology laboratory trials and used his insurance business to hide those kickbacks. “US lawyer Ryan Buchanan said in a news release. “Patients go to a healthcare provider for treatment, hoping that treatment or testing is needed, not fraudulent fraud.”
Prosecutors say Oxendin colluded with Dr. Jeffrey Gallups and others to file a fraudulent claim to the Texas lab for medically unnecessary lab tests. The indictment states that the lab companies Oxendine and Gallups have signed a contract to pay Gallups a kickback of 50% of the profits of the specimens submitted by the practice of the Gallups test. According to the indictment, the laboratory company paid the kickback through Oxendin. Oxendin held a portion of the money for himself and used that portion to pay Gallup’s specific debt.
The prosecution said the lab company filed more than $ 2.5 million in claims for the lab test ordered by Gallup’s clinic and the insurance company paid the lab company more than $ 600,000 for those claims. rice field. According to prosecutors, the institute subsequently paid $ 260,000 in kickback through Oxendin’s insurance business. According to the prosecutor, Oxendin then paid Gallup a $ 150,000 charitable donation and $ 70,000 attorneys’ fees.
Gallups was charged with medical fraud last year and pleaded guilty in October. According to court records, he is scheduled for next month.
Drew Findling and Marissa Goldberg, the defendant lawyers of Oxendin, said in an email statement that Oxendin “was the subject of this investigation because of his name and gravity, but clarifies. Because of this, he has not violated any law and is innocent of this prosecution. “
Oxendin served as a state insurance committee member from 1995 to 2011. He ran for governor in 2010, but lost the Republican primary.
According to the Atlanta Journal-Constitution, the State Institutional Review Board began investigating and prosecuting election funding cases against him in 2009, resolving the last of these cases earlier this month.
Photo: On Tuesday, July 20, 2010, John Oxendin speaks with reporters before the vote finishes reporting the results on the night of the primary elections in Atlanta. (AP photo / John Amis)
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