Tom McCardell, 64, of Lafayette, La., is going down for his role in a calculated Medicare rip-off that bled over $6.7 million from federal coffers. A federal jury in Shreveport convicted McCardell Thursday on 14 counts of paying illegal kickbacks, wrapping up a four-day trial with four hours of deliberation. The verdict marks a win for federal prosecutors in a case that exposed rot in a mental health care system meant to heal, not exploit.
McCardell, former administrator of Physicians Behavior Hospital (PBH) in Shreveport, ran the scheme from July 2011 to November 2012. He funneled money to an Alabama man with zero medical training just for steering patients to PBH for psychiatric and substance abuse treatment. With patients boarding buses unattended—many in vulnerable states—McCardell treated human beings like cargo, moving them across state lines for profit.
To cover his tracks, McCardell hid the illegal payments under the name of the recruiter’s son. He ordered PBH staff to fabricate an employee file for the son—paperwork for a ghost worker who never showed up to work. In total, the hospital cut checks totaling $41,000 to the son, money he had no right to collect. It was fraud dressed as payroll.
The scam didn’t stop there. PBH billed Medicare more than $6.7 million during the scheme. Over $1.2 million in government funds were paid out—all for patients recruited through a backroom deal that violated every standard of medical ethics and federal law. The hospital became a billing mill, and McCardell was the man at the controls.
Now, he’s facing the consequences. McCardell could get up to five years in prison for each of the 14 counts—stacked, that’s a lifetime behind bars—plus three years of supervised release and a $250,000 fine per count. The sentencing, set before U.S. District Judge Elizabeth E. Foote, will send a message: stealing from Medicare won’t be swept under the rug.
The case was investigated by the Department of Health and Human Services-Office of Inspector General and the FBI. Assistant U.S. Attorneys Earl M. Campbell and Tennille M. Gilreath led the prosecution. For the DOJ, this conviction is more than a win—it’s a warning to anyone turning taxpayer-funded health programs into personal piggy banks.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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