Former Georgia insurance commissioner sentenced to prison for healthcare fraud
ATLANTA - John Oxendine, the former Georgia Insurance Commissioner, has been sentenced to over 3-½ years in prison for conspiracy to commit healthcare fraud. This sentencing stems from his involvement in unnecessary lab testing schemes.
PREVIOUS: Ex-Georgia insurance commissioner John Oxendine pleads guilty to health care fraud
U.S. Attorney Ryan K. Buchanan stated, "Oxendine abused his position as the Georgia Insurance Commissioner by undermining the integrity of the state’s healthcare system when he conspired with a physician to order hundreds of unnecessary and costly lab tests." Buchanan emphasized that this case highlights the commitment of law enforcement to hold individuals accountable for prioritizing personal greed over public trust.
Keri Farley, Special Agent in Charge of FBI Atlanta, remarked that Oxendine's actions were driven by personal greed rather than duty to patients and citizens. Farley noted that Oxendine not only profited from unnecessary tests but also instructed others to lie to federal agents to cover up the fraud. The FBI continues to investigate healthcare fraud to ensure justice is served.
Tamala E. Miles of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG) affirmed their commitment to protecting health insurance programs from fraudulent activities. She praised the collaborative efforts of federal law enforcement in bringing perpetrators to justice.
Special Agent in Charge Darrin K. Jones from the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office, stated that this sentencing should deter those in power from exploiting and defrauding TRICARE, the military's healthcare system.
The court revealed that Oxendine conspired with Dr. Jeffrey Gallups and others to submit fraudulent insurance claims for unnecessary testing. Physicians in Gallups’ practice were pressured to order these tests from Next Health, a Texas lab, in exchange for kickbacks. Oxendine and Gallups received $260,000 in kickbacks from Next Health, which submitted over $3 million in insurance claims. Oxendine also used part of the kickback money for charitable contributions and legal fees for Dr. Gallups.
Oxendine attempted to cover up the scheme by instructing Gallups to lie about the payments when questioned by federal agents. He also denied involvement with Next Health during an interview with the Atlanta Journal-Constitution.
John W. Oxendine, 62, was sentenced to three years and six months in prison, followed by three years of supervised release. He was ordered to pay $760,175.34 in restitution and a $25,000 fine. He was convicted after pleading guilty on March 22, 2024. This case is connected to United States v. Gallups, in which Dr. Jeffrey Gallups pleaded guilty to healthcare fraud and was sentenced to 33 months in prison.
The investigation was conducted by the FBI, HHS-OIG, and DCIS.