Lab Owner Indicted For $100 Million Health Care Fraud Scheme

Lab Owner Indicted For $100 Million Health Care Fraud Scheme

On November 2, 2021, a federal grand jury in the Western District of Arkansas indicted Billy Joe Taylor of Arkansas for an alleged health care fraud scheme.  Taylor owned or managed several diagnostic testing laboratories.  Between February 2017 and May 2021, Taylor allegedly submitted more than $100 million in false billings for urine drug testing and tests for respiratory illness that were medically unnecessary, not ordered by medical providers, or not provided as represented.  According to the indictment, Taylor used the private personal information of Medicaid beneficiaries to repeatedly submit claims for tests that were never ordered or performed.  Taylor allegedly used funds obtained from the scheme to purchase luxury vehicles, real estate, jewelry, guitars, and other luxury items.

Taylor was charged with 16 counts of health care fraud and one count of engaging in a monetary transaction in criminally-derived property.  He was previously charged by criminal complaint in May 2021.  He faces a maximum of 10 years imprisonment for each count.

The DOJ press release is here.

Former NBA Players Plead Not Guilty to $4 Million Health Care Fraud Scheme

Eighteen former NBA players pleaded not guilty to fraud charges relating to an alleged $4 million scheme.  In early October, the athletes were indicted by federal prosecutors in the Southern District of New York.  According to the indictment, the ex-NBA players engaged in a scheme between 2017 and 2020 led by former Boston Celtics player Terrence Williams to submit fake invoices for medical and dental care to the NBA Players Health and Welfare Benefit Plan.  The athletes allegedly submitted false claims totaling $3.9 million and received $2.5 million from the health plan.  Williams is also alleged to have recruited additional players to the scheme and to have received $230,000 in kickbacks in exchange for providing the players with fraudulent invoices.  

Sixteen of the defendants were arrested by the FBI on October 7th.  All 18 of the defendants have pled not guilty and are free on personal recognizance bonds.

The DOJ press release announcing the charges is here.

Mississippi Podiatrist Indicted for $11 Million Foot Bath Scheme

A federal grand jury in Oxford, Mississippi, indicted podiatrist Carey “Craig” Williams on several counts of health care fraud and related charges in connection with an alleged scheme to defraud health care benefit programs.  According to the indictment, Williams prescribed patients antibiotic and antifungal drugs and instructed them to soak their feet in a tub of warm water mixed with the drugs. The prescribed drugs often were not medically intended to be dissolved and had high Medicare reimbursement rates.  Williams allegedly caused pharmacies to submit false claims totaling $4.9 million between July 2016 and July 2021 for medically unnecessary foot bath medications. 

Williams also allegedly ordered that patients’ toenail clippings be tested for diseases that are rarely found on toenails, including “cat scratch disease.” Williams’ scheme allegedly caused a diagnostic laboratory to submit false claims totaling more than $6.4 million between January 2018 and April 2021 for medically unnecessary molecular diagnostic testing.  The indictment further alleges that Williams referred the medically unnecessary prescriptions and testing orders to pharmacies and laboratories in exchange for kickbacks solicited from a marketer.

The DOJ press release is here.