Andrew "Drew" Maloney, a 57-year-old Roswell, Georgia resident, admitted to a felony charge of conspiracy to pay health care kickbacks in a sweeping case that has entangled his clinical laboratory, Capstone Diagnostics. The plea, paired with an agreement to pay a hefty $14.3 million, seeks to close a chapter on fraudulent activities that targeted vulnerable federal health care programs, according to a Justice Department statement. Maloney's company was caught in a kickback scheme, where they dishonorably paid commissions to push for unnecessary medical tests, including urine drug tests and respiratory pathogen panels.
The scheme not only flouted the Anti-Kickback Statute, but also burdened Medicare and other federal health programs with superfluous costs. At the center of the controversy, Maloney’s laboratory profited from the COVID-19 pandemic by manipulating the demand for respiratory tests in senior communities. “The law prohibits health care providers, including laboratories, from paying kickbacks to third parties to generate business,” stated Brian M. Boynton, Principal Deputy Assistant Attorney General. Boynton emphasized the diligence required to prevent such corrupt practices, which jeopardize the integrity of federal health programs.
The guilty plea intertwines with several states' resolutions to allegations that Capstone, under Maloney’s guidance, deviated severely from lawful operations. Between 2020 and 2021, the laboratory exploited the pandemic's urgent environment, using forged signatures to order tests and paying commissions based on these deceitful practices, the Justice Department revealed. These actions swindled substantial sums from federal health care programs.
Ryan K. Buchanan, U.S. Attorney, underscored the shared resolve of federal and state agencies to pursue such fraudulent actors, “By simultaneously obtaining criminal and civil resolutions, as well as working with our partners from the Georgia Attorney General's Office, this case demonstrates our office's commitment to using all available tools to hold accountable those who seek to steal from federal health care programs.” The fallout of Maloney's actions ripples further, with the victims of these schemes extending beyond the government to the individuals whose care was supposed to be preserved by the misused funds.
Alongside Maloney, four other individuals have plea-bargained, accepting their role in the scheme. Their punishments range from probation to several years of imprisonment, and hefty sums of restitution are set to be paid. In a gratifying twist for whistleblowers, Jesse Allen, formerly employed as Capstone's laboratory manager, will receive roughly $2.86 million for exposing these unethical practices—the company's twisted conduct laid bare by one of their own.
Looking ahead, Maloney's sentencing is slated for May 29, 2024, before U.S. District Judge J.P. Boulee. Meanwhile, the Justice Department continues its vigilance against pandemic-related fraud through its COVID-19 Fraud Enforcement Task Force. As the dust settles on this case, the public is urged to remain watchful and report suspicion of fraud, ensuring that schemes like Capstone's become less a mainstay and reminiscent of a dubious past.
