A former Georgia state insurance commissioner has pleaded guilty to a healthcare fraud conspiracy involving hundreds of thousands of dollars in kickbacks, according to officials.
According to the US Attorney’s Office for the Northern District of Georgia, John Oxendine pleaded guilty on Friday to conspiracy to conduct health care fraud. They claimed Oxendine collaborated with others to submit fake insurance claims for unneeded medical tests to a Texas lab company in exchange for payment.
“This scheme to bill for unnecessary services has no place in our healthcare system,” stated Keri Farley, Special Agent in Charge of the FBI Atlanta. “Not only did they raise healthcare costs for all beneficiaries, but they also breached patients’ trust. John Oxendine not only benefitted from this plan but also directed another to lie to federal officials in an attempt to conceal the fraud.”
Officials said the Texas lab filed insurance claims seeking more than $2,500,000 in compensation from private health insurers for needless procedures.
The lab received over $700,000 in insurance payments as a result of the bogus claims. The lab subsequently paid Oxendine and a co-conspirator a total of $260,000 in kickbacks, according to the US Attorney’s Office.
“John Oxendine, as the former state-wide insurance commissioner, knew the importance of honest dealings between doctors and insurance companies,” U.S. Attorney Ryan K. Buchanan stated. “But for personal gain, he knowingly colluded with a physician to request hundreds of unnecessary lab tests, totaling hundreds of thousands of dollars. He will now be held accountable for breaching the public trust.”
The 61-year-old Johns Creek resident is expected to be sentenced on July 12 at 10 a.m. before U.S. District Judge Steve C. Jones.