A man from Missouri named Jamie P. McNamara has admitted guilt in a massive scam that tricked Medicare out of millions of dollars. This scam involved fake genetic testing for cancer and heart disease. McNamara operated several laboratories that charged Medicare for these tests, but the way he got the tests ordered and billed was illegal. The details of the case show how complicated and serious health care fraud can be.
How the Fraud Happened
Jamie P. McNamara ran labs in Louisiana and Texas. He used telemarketers and call centers to convince Medicare patients to agree to genetic testing. These telemarketers were very pushy and often tricked people into giving permission for tests they didn’t really need.
The orders for these tests were signed by doctors who never actually treated or talked to the patients. These so-called telemedicine doctors were not the patients’ real doctors, never performed consultations, and did not follow up after testing.
To get these fake orders, McNamara paid illegal kickbacks and bribes. He hid these payments with fake contracts. He also moved billing between his different labs to try to avoid being caught by Medicare and law enforcement. To cover up his ownership, he falsely listed his family members as the owners and representatives of the labs on official documents.
The Scale of the Crime
In about a year and a half, McNamara’s labs submitted over $174 million in claims to Medicare for genetic testing. Medicare paid out more than $55 million for these tests, many of which were unnecessary or never properly authorized.
Oleg Beretsky Accused of $22 Million Health Care Fraud in Massive Kickback Scheme
The government has seized several luxury vehicles and over $7 million in bank accounts linked to McNamara. These seizures show the scale of the profits from this illegal scheme.
Matthew R. Galeotti, the head of the Justice Department’s Criminal Division, stated, “The defendant used illegal payments and deception to fraudulently bill Medicare for more than $174 million. Health care fraud hurts patients, wastes government funds, and breaks the public’s trust.”
Legal Actions and Violations
Jamie P. McNamara pleaded guilty to conspiracy to commit health care fraud. This means he admitted to working with others to cheat Medicare by using fake doctors and false billing.
While awaiting trial, McNamara broke the terms of his bond by fleeing after a DUI arrest and tampering with his ankle monitor. As a result of these violations, he was taken into custody and will remain detained until his sentencing.
He is scheduled to be sentenced on September 9 and could face up to 10 years in prison. A federal judge will decide the exact punishment after reviewing the case and sentencing guidelines.
Investigations and Official Statements
Acting U.S. Attorney Michael M. Simpson for the Eastern District of Louisiana stressed, “Medicare fraud deeply undermines taxpayers’ trust and confidence in our healthcare system. It is essential to identify, investigate, and prosecute these kinds of schemes.”
Dr Wendell Lewis Randall Sentenced for Health Care Fraud
Jonathan Tapp, Special Agent in Charge of the FBI’s New Orleans Field Office, pointed out, “McNamara filled his own pockets by taking advantage of vulnerable Americans worried about their health. The genetic tests Medicare patients were tricked into getting didn’t give them any real information about their risk for serious illnesses and ended up costing taxpayers millions.”
Christian J. Schrank, Deputy Inspector General for Investigations at the Health and Human Services Office of Inspector General (HHS-OIG), stated, “Using fraudulent genetic testing to mislead patients and exploit the Medicare program is not only unethical—it’s a crime. This guilty plea demonstrates HHS-OIG’s strong dedication to holding those who deceive patients responsible for their actions.”
The FBI and HHS-OIG conducted the investigation, while prosecutors from the Justice Department’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana managed the case in court. Assistant Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters led the prosecution along with Assistant U.S. Attorney Nicholas Moses.
Since 2007, the Health Care Fraud Strike Force Program, led by the Fraud Section, has charged thousands of defendants involved in health care fraud. This case is part of ongoing efforts to protect Medicare and hold fraudsters accountable.
