Willie Ann Cleveland and Timothy C. Peoples, Kickback Scheme, Missouri 2024

A pair of individuals has been accused of engaging in an illegal kickback scheme involving genetic and COVID-19 tests given to seniors in Missouri.

Willie Ann Cleveland, 41, of Tuscaloosa, Alabama, and Timothy C. Peoples, 56, of Bridgeton, Missouri, were indicted on August 7 in U.S. District Court in St. Louis on one count of conspiracy to receive and pay healthcare kickbacks.

According to the indictment, Peoples collected biological specimens for genetic and COVID-19 testing, primarily from Medicare patients at senior citizen centers in eastern Missouri, from 2017 through August 7, 2024.

Cleveland introduced Peoples to laboratory personnel, allowing them to set up the kickback scheme, the indictment states. The two allegedly created sham contracts to conceal the kickbacks as a 'monthly flat marketing fee.'

Cleveland received $9,000 from a laboratory on March 1, 2022, and wired $7,000 to Peoples three days later, according to one allegation in the indictment.

The indictment also accuses Cleveland and Peoples of offering to pay a physician a $100 kickback in exchange for each lab test ordered.

Both Cleveland and Peoples have pleaded not guilty to the charges. The conspiracy charge is punishable by up to five years in prison, a $250,000 fine, or both prison and a fine.

The U.S. Department of Health and Human Services, Office of Inspector General investigated the case, and Assistant U.S. Attorney Derek Wiseman is prosecuting.

Source: https://www.justice.gov/usao-edmo/pr/pair-accused-kickback-scheme-involving-lab-testing