Louisiana lab CFO gets prison for role in $127M fraud scheme

The co-owner and CFO of a Baton Rouge, La.-based clinic was sentenced to 32 months in prison for his role in a $127 million Medicare fraud scheme, The Advocate reported Sept. 3. 

Kevin Hanley, 47, was one of six men indicted in the scheme, according to the report. He pleaded guilty in January 2020 to a federal conspiracy charge and admitted he paid kickbacks to at least three other companies that recruited Medicare beneficiaries in exchange for referrals to his lab — Acadian Diagnostic Laboratories — for testing. 

The companies submitted $127.4 million in fraudulent claims to Medicare between March 2018 and 2019, according to the report. Medicare paid out $21.3 million on those claims. 

In addition to the prison sentence, Mr. Hanley was fined $20,000 and ordered to pay more than $21.3 million in restitution to CMS, according to the report. 

Mr. Hanley's brother-in-law, Terry Wilks, was the co-owner and CEO of the lab. He was sentenced in September 2023 to three years in prison for his role in the scheme. 



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