Former insurance commissioner pleads guilty in health fraud case

Former Georgia Insurance Commissioner John W. Oxendine on Friday pleaded guilty to conspiracy to commit health care fraud and agreed to pay $699,864 in restitution to health insurers in connection with an alleged money laundering scheme.

Mr. Oxendine, of Johns Creek, Georgia, entered the guilty plea in the U.S. District Court for the Northern District of Georgia in Atlanta. He faces a maximum penalty of 10 years in prison but is likely to be sentenced to less based on guidelines outlined in the plea agreement, according to news reports.

As part of the plea deal, prosecutors agreed to dismiss the money laundering charge.

“John Oxendine, as the former state-wide insurance commissioner, knew the importance of honest dealings between doctors and insurance companies,” Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, said Friday in a statement. “But for personal profit he willfully conspired with a physician to order hundreds of unnecessary lab tests, costing hundreds of thousands of dollars. He will now be held accountable for violating the public’s trust.”

Mr. Oxendine is set to be sentenced July 12 before U.S. District Judge Steve C. Jones.

Source: Former insurance commissioner pleads guilty in health fraud case / Business Insurance

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