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Mississippi Man’s $51M Healthcare Scam Exposed
NEWARK, N.J. – In a disturbing revelation, Keaton Langston, a 39-year-old resident of Booneville, Mississippi, has pleaded guilty to a healthcare fraud scheme that has left Medicare with losses exceeding $51 million.
Langston, who owned, operated, had financial interests in, or was affiliated with pharmacies, durable medical equipment (DME) companies, and a laboratory, admitted to conspiring with others to defraud healthcare benefit programs by offering and paying kickbacks and bribes in exchange for doctors’ orders.
According to documents filed in the case, Langston and his associates used pharmacies, DME companies, and a laboratory to submit false claims to Medicare for reimbursement without regard to medical necessity. A portion of the proceeds was sent to others as payment for the doctors’ orders generated through the conspiracy.
Langston and his associates concealed the payment of bribes by entering into sham contracts designed to make it appear that suppliers were engaged in legitimate marketing and referral services. The pharmacies, DME companies, and laboratory billed Medicare and other healthcare benefit programs at approximately $51 million for tests and orders that were the product of the illicit scheme.
Langston received approximately $10 million from these reimbursements, making him a key player in the massive healthcare scam.
The charge of conspiracy to commit healthcare fraud is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for October 1, 2024.
Attorney for the United States Caroline Sadlowski credited special agents of the FBI, the Department of Health and Human Services-Office of Inspector General, the U.S. Department of Defense, Office of the Inspector General, and the U.S. Department of Veterans Affairs Office of Inspector General with the investigation leading to the guilty plea.
Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division represents the government in this case.
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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