Federal grand jury indicts Gadsden man on kickback, health care fraud charges

  • In US
  • 2022-10-04 16:35:45Z
  • By The Gadsden Times

A Gadsden man was indicted last week by a federal grand jury on charges of conspiring to pay and receive kickbacks and commit health care fraud, according to a news release from the U.S Justice Department.

James Ewing Ray, 51, is accused of one count of kickback conspiracy, four counts of substantive (receiving) kickbacks, and one count of health care fraud conspiracy, according to the release.

Ray was the owner of Integrity Medical, LLC, which marketed health care items and services to medical providers.

The indictment in U.S. District Court alleges that between 2012 and 2018, he conspired with others to pay and receive kickbacks to issue prescriptions and order goods and services that were medically unnecessary. The charges then were billed to Medicare and other health insurers.

Page BreakThe indictment contends those services include electro-diagnostic testing by QBR of Huntsville, a testing company, whose owner, John Hornbuckle, has been indicted in a related case.

Prosecutors allege that QBR's technicians performed, and the company billed insurers for, millions of dollars worth of electro-diagnosis testing, regardless of whether there was a medical need for it. It then allegedly paid Ray a fee for every patient referred by his doctors and paid those doctors a per-patient referral fee.

That allegedly resulted in federal insurers being billed millions of dollars for those tests. Under the Federal Anti-Kickback Statute, it's a crime to solicit or receive remuneration in exchange for referring patients for services when a federal health care program makes payment.

Ray faces maximum prison terms of five years for kickback conspiracy, and 10 years each for health care fraud conspiracy and substantive kickbacks.

The indictment was announced by Prim Escalona, U.S. Attorney for Alabama's Northern District; Felix Rivera-Esparra, Federal Bureau of Investigation Acting Special Agent in Charge; and Tamala Miles, Special Agent in Charge in the U.S. Department of Health and Human Services' Office of Inspector General.

It followed an investigation by the FBI and the HHS Office of Inspector General.

Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting the case.

This article originally appeared on The Gadsden Times: Gadsden man accused of kickbacks, health care fraud


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