Lavaca man charged with health care fraud, laundering of money

FORT SMITH — A Lavaca man who owned or managed multiple diagnostic testing laboratories was indicted in federal court Tuesday in connection with more than $100 million in false billings, including for covid-19.

Billy Joe Taylor, 42, was charged with 16 counts of health care fraud and one count of money laundering, according to a Wednesday news release from the U.S. Department of Justice. Each count is punishable by up to 10 years in prison. Taylor was charged by criminal complaint in May.

Taylor engaged in a scheme involving diagnostic laboratory testing neither medically necessary nor ordered by medical providers from February 2017 to May, as well as testing not provided as represented, according to the news release. The indictment states Taylor used diagnostic laboratories he controlled to submit more than $100 million in false and fraudulent claims to Medicare, according to the release.

“The indictment alleges that Taylor obtained medical information and private personal information for Medicare beneficiaries and then misused that confidential information to repeatedly submit claims to Medicare for diagnostic tests that were not ordered by medical providers and were not actually performed by the laboratories,” the release states.

The indictment claims Taylor used the proceeds of the fraud to live a lavish lifestyle, including purchasing numerous luxury automobiles, including a Rolls-Royce Wraith, as well as real estate, jewelry and guitars.

Taylor’s arraignment is scheduled to be via Zoom at 1 p.m Nov. 23 in Fort Smith before Magistrate Judge Mark E. Ford, according to court records.