Fourth Defendant Pleads Guilty in $7 Million COVID-19 Testing Fraud

An Irving man has pleaded guilty to participating in a massive COVID-19 testing fraud scheme, resulting in a loss of over $7 million to insurers. Terrance Barnard, 40, admitted to conspiring with others to access private patient information from various clinics where he worked as a contract lab technician. Barnard and his co-conspirators used this information to submit fraudulent insurance claims for COVID-19 testing that was never performed. The fraudulent claims were submitted to major insurance providers, including Blue Cross Blue Shield and United Healthcare, resulting in reimbursements of over $7 million. Barnard now faces up to seven years in federal prison and has agreed to forfeit over $7 million in assets.

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Defendant Pleads Guilty in $7 Million COVID-19 Testing Fraud

In a significant development related to COVID-19 testing fraud, a defendant named Terrance Barnard has pleaded guilty to submitting fraudulent insurance claims, resulting in a loss of over $7 million to insurers. U.S. Attorney for the Northern District of Texas, Leigha Simonton, announced the guilty plea and highlighted the severity of the offense. Barnard was indicted in December and has now admitted to Conspiracy to Commit Health Care Fraud, Aggravated Identity Theft, and Aiding and Abetting Aggravated Identity Theft. The guilty plea was made before U.S. Magistrate Judge Irma Carrillo Ramirez.

Background

Indictment and Charges

Terrance Barnard, along with his co-conspirators, was charged with engaging in a fraudulent scheme involving the submission of false insurance claims for COVID-19 testing. The indictment alleged that Barnard and his accomplices accessed private patient information, including names, dates of birth, and insurance subscriber numbers, through various clinics where Barnard worked as a contract lab technician. This information was then used to submit fraudulent claims to insurance providers for COVID-19 testing that was never performed.

Plea Agreement and Forfeiture

As part of his guilty plea, Barnard has agreed to a forfeiture money judgment of $7.29 million. Additionally, he will forfeit several items that were seized during the investigation, including $2.5 million in funds from various bank accounts, two residences, six vehicles, and six luxury watches. These forfeitures are aimed at compensating the victims of the fraud scheme and deter future fraudulent activities.

Details of the Fraud Scheme

Accessing Patient Information

Barnard and his co-conspirators gained access to private patient information by exploiting their positions at various clinics. They extracted sensitive data such as names, dates of birth, and insurance subscriber numbers, which were crucial for submitting fraudulent insurance claims. Barnard utilized different methods, including photographing patient information and storing the images on disposable “burner” phones. He and his associates also illegally accessed the clinics’ confidential electronic medical records to obtain large amounts of patient information at once.

Submission of Fraudulent Claims

Using the acquired patient information, Barnard and his accomplices proceeded to submit fraudulent claims to insurance providers. Companies such as Blue Cross Blue Shield, Cigna, United Healthcare, Aetna, Humana, and Molina Health Care were targeted. These claims sought reimbursements for COVID-19 testing that had never been performed. The patients involved were completely unaware of the use of their personal information for fraudulent purposes.

Fake Testing Entities

As part of the elaborate scheme, the co-conspirators created several shell entities that were presented as legitimate labs. These entities, including TC Diagnostics, ME Diagnostics, and PHR Diagnostics, were falsely claimed to have conducted the COVID-19 testing for which the fraudulent claims were submitted. However, investigations revealed that these entities never operated as labs.

Terrance Barnard’s Guilty Plea

Charges and Plea

Terrance Barnard has pleaded guilty to Conspiracy to Commit Health Care Fraud, Aggravated Identity Theft, and Aiding and Abetting Aggravated Identity Theft. This indicates his admission of involvement in the fraudulent scheme relating to COVID-19 testing. By entering a guilty plea, Barnard has acknowledged his actions and accepted responsibility for the crimes committed.

Potential Prison Sentence

Upon conviction, Barnard faces a potential prison sentence of up to seven years. The severity of the offense, along with the substantial financial loss incurred by insurers, demands an appropriate punishment. The court will consider various factors, including the nature and extent of Barnard’s involvement in the fraud scheme, during the sentencing process.

Co-Conspirators and Their Guilty Pleas

While Terrance Barnard has pleaded guilty, he is not the only individual involved in the fraudulent scheme. Several co-conspirators have also entered guilty pleas and are awaiting sentencing.

Connie Jo Clampitt

Connie Jo Clampitt, a 52-year-old individual, has pled guilty to charges related to the COVID-19 testing fraud scheme. Clampitt’s involvement in the scheme, along with her role in accessing patient information and participating in the submission of fraudulent claims, will be taken into account during sentencing.

William Paul Gray

William Paul Gray, aged 50, has also entered a guilty plea in connection with the fraudulent scheme. Gray’s admission of guilt establishes his involvement and active participation in the submission of false insurance claims. The court will carefully consider these factors when determining an appropriate sentence.

Don Hogg

Don Hogg, 37, is another co-conspirator who has pled guilty in the COVID-19 testing fraud case. Hogg’s admission of guilt demonstrates his involvement in the scheme and complicity in the submission of fraudulent claims. The court will evaluate Hogg’s actions and role in the fraud when determining the appropriate sentence.

Sentencing Dates

Connie Jo Clampitt, William Paul Gray, and Don Hogg are all currently scheduled to be sentenced in November 2023. The court will carefully review each co-conspirator’s admission of guilt and consider the extent of their involvement in the fraudulent scheme during the sentencing hearings.

Investigating Agencies

Multiple agencies were involved in the investigation of this significant COVID-19 testing fraud case. Their diligent work contributed to the successful identification and prosecution of the individuals responsible for the scheme.

Department of Labor – Employee Benefits Security Administration

The Dallas Regional Office of the Department of Labor’s Employee Benefits Security Administration played a key role in the investigation. This agency focuses on promoting and ensuring compliance with the laws governing the employee benefits plans offered by private employers.

Department of Labor – Office of Inspector General

The Dallas Office of the Department of Labor’s Office of Inspector General also participated in the investigation. This agency conducts audits, investigations, and evaluations to promote the economy, efficiency, and integrity of departmental programs, as well as ensuring compliance with applicable laws and regulations.

Texas Department of Insurance Fraud Unit’s Fort Worth Field Office

The Texas Department of Insurance operates a Fraud Unit that investigates insurance-related crimes, including fraudulent claims. The Fort Worth Field Office of this unit contributed its expertise and resources to the investigation into the COVID-19 testing fraud scheme.

Federal Bureau of Investigation’s Dallas Field Office

The Dallas Field Office of the Federal Bureau of Investigation (FBI) played a crucial role in uncovering the details of the fraudulent scheme. The FBI, as the primary investigative agency of the federal government, has extensive capabilities for investigating a wide range of criminal activities, including healthcare fraud.

Prosecution Team

The prosecution team responsible for bringing the defendants to justice comprises experienced attorneys familiar with cases involving fraud and related offenses.

Assistant U.S. Attorney Renee Hunter

Assistant U.S. Attorney Renee Hunter is one of the lead prosecutors in the case against Terrance Barnard and his co-conspirators. As an experienced federal prosecutor, Hunter has the knowledge and skills necessary to present a strong case against the defendants and seek appropriate punishment for their crimes.

Assistant U.S. Attorney Dimitri Rocha

Assistant U.S. Attorney Dimitri Rocha is also part of the prosecution team handling the case. Rocha’s legal expertise and dedication to upholding the law contribute to the government’s efforts to hold the defendants accountable for their actions.

Response to COVID-19 Pandemic Fraud

The Department of Justice (DOJ) has made considerable efforts to combat fraud related to the COVID-19 pandemic. Recognizing the potential for illegal activities during times of crisis, the DOJ has established special task forces and allocated resources to investigate and prosecute individuals engaged in pandemic-related fraud schemes.

Justice Department’s Efforts

The Justice Department, through its various divisions and offices, has been actively involved in investigating and prosecuting COVID-19-related fraud cases. These efforts aim to protect the public and ensure that those who exploit the pandemic for personal gain are held accountable for their actions.

More Information

For more information about the Justice Department’s response to COVID-19-related wrongdoing, including fraud, individuals can visit the official DOJ website at https://www.justice.gov/coronavirus. This website provides valuable information and resources for understanding and addressing pandemic-related fraud.

Contact Information

Individuals seeking further information or clarification regarding the COVID-19 testing fraud case, the prosecution process, or related matters can contact the designated public affairs representative.

Public Affairs Contact

Erin Dooley
Public Affairs
Phone: 214-659-8707
Email: erin.dooley@usdoj.gov

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Stay Connected

To stay connected and receive regular updates on important developments and news from the U.S. Department of Justice, individuals can follow the official social media channels.

Social Media Channels

Government Services Contact

For individuals seeking assistance or information regarding government services, the designated contact for the U.S. Department of Justice is available to provide guidance and support.

Contact USA.gov

Conclusion

The guilty plea of Terrance Barnard, along with the guilty pleas of his co-conspirators in the $7 million COVID-19 testing fraud case, marks a significant step towards justice. The elaborate scheme involving the submission of fraudulent insurance claims and the creation of fake testing entities has resulted in substantial losses for insurers. However, the collaborative efforts of investigating agencies, the dedication of the prosecution team, and the Justice Department’s response to pandemic-related fraud demonstrate a commitment to hold individuals accountable for their actions. With the upcoming sentencing hearings for the co-conspirators, it is expected that the court will impose appropriate penalties to deter future fraudulent activities.

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Source: https://www.justice.gov/usao-ndtx/pr/fourth-defendant-pleads-guilty-7-million-covid-19-testing-fraud