According to the U.S. Attorney's Office for the Eastern District of North Carolina, 59-year-old James Shuford Price III pleaded guilty in federal court to paying kickbacks tied to referrals sent to his California-based laboratory, as well as filing a false federal tax return.
Prosecutors say Price orchestrated a scheme that generated over 60 million in fraudulent claims to government healthcare programs. The operation involved submitting thousands of illegitimate laboratory test claims -- including for COVID-19, the flu and RSV -- resulting in millions of dollars in reimbursements from programs such as Medicare and Medi-Cal.
"Stealing taxpayer dollars that should be used to help legitimate beneficiaries is lowdown, dirty pool. We have a message to fraudsters who steal federal dollars: we will catch, prosecute, and imprison you. Cheaters. Never. Win." U.S. Attorney Ellis Boyle said.
Price faces a maximum sentence of 13 years in prison, a $500,000 fine and three years of supervised release at sentencing. He will also be required to pay restitution to multiple agencies, including Medicare, the IRS and California's Medicaid program.
He also pleaded guilty to filing a false federal income tax return for 2022. Investigators say he failed to report multiple sources of income, including money he had received from victims in connection to a previous investment scam.
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