Former politician John Oxendine indicted for health care fraud

ATLANTA (WDEF) – A formerly powerful Georgia lawmaker has been indicted by a federal grand jury on charges of health care fraud and money laundering.

John Oxendine served as Insurance Commissioner for the state for three terms before losing a bid for Governor in 2010.

But he has been dogged by ethics complaints and investigations since then.

“The indictment alleges that Oxendine conspired to obtain kickbacks for unnecessary genetic and toxicology lab tests, and used his insurance business to hide those kickbacks,” said U.S. Attorney Ryan K. Buchanan.  “Patients go to their healthcare provider for treatment with the expectation that their treatment or test is necessary, not a scam for fraud.”

Prosecutors say that Oxendine conspired with doctors to submit fraudulent insurance claims for unnecessary testing.

Doctors in the practice were pressured to order the tests from a lab in Texas.

Then the lab would pay the head of the group and Oxendine 50% of the profits.

The numbers from the indictment:

— the lab submitted claims of $2.5 million for lab tests from just the one medical practice

— Insurance companies paid $600,000 in claims

— the lab paid Oxendine $260,000, which he used to pay off debts for the medical practice.

“These allegations describe someone who was more motivated by personal greed than their duty to provide appropriate and necessary care to patients,” said Keri Farley, Special Agent in Charge of FBI Atlanta.

Categories: Regional News