Kansas City, MO — A Missouri man has pleaded guilty to orchestrating a massive Medicare fraud scheme involving fraudulent genetic testing that bilked the federal government out of tens of millions of dollars, the U.S. Department of Justice announced today.
Jamie P. McNamara, 49, of Kansas City, admitted in federal court to conspiracy to commit health care fraud, after prosecutors uncovered that he led an elaborate operation spanning multiple states and raked in over $55 million in fraudulent reimbursements from Medicare.
According to court documents, McNamara ran several laboratories in Louisiana and Texas that falsely billed Medicare for cancer and cardiovascular genetic tests. These labs secured orders for testing using aggressive telemarketing campaigns that targeted Medicare beneficiaries, convincing them to submit to unnecessary tests.
The orders were signed by telemedicine doctors who had never met or spoken with the patients, and who were not their treating physicians. In many cases, no follow-up was provided after the testing. Prosecutors said McNamara paid illegal kickbacks and bribes to secure these doctor orders, concealing the payments through sham contracts.
To evade regulatory scrutiny, McNamara shifted billing between his labs, falsified ownership documents by naming family members as company representatives, and misled Medicare officials.
“The defendant used illegal payments and lies to fraudulently bill Medicare over $174 million,” said Matthew R. Galeotti, Head of the DOJ’s Criminal Division. “Health care fraud harms patients, drains government resources, and violates the public trust.”
McNamara’s labs submitted over $174 million in claims to Medicare during a period of about 18 months, ultimately receiving more than $55 million in taxpayer-funded payments. Federal authorities have already seized several luxury vehicles and over $7 million in bank accounts tied to McNamara.
While out on pretrial release, McNamara further violated the law by fleeing from a DUI arrest and cutting off his ankle monitor, which led to his detention pending trial.
“McNamara lined his pockets by preying on vulnerable Americans concerned about their health,” said Jonathan Tapp, Special Agent in Charge of the FBI’s New Orleans Field Office. “The genetic tests… did not provide them with any answers… and cost taxpayers millions.”
McNamara pleaded guilty to conspiracy to commit health care fraud, a charge that carries a maximum sentence of 10 years in federal prison. He is scheduled to be sentenced on September 9. The final sentence will be determined by a federal judge, taking into account the U.S. Sentencing Guidelines and other statutory factors.
“Today’s plea reflects HHS-OIG’s steadfast commitment to holding those who deceive patients… accountable,” said Christian J. Schrank, Deputy Inspector General for Investigations at HHS-OIG.
