Dallas lady pleads responsible to $7 million COVID-19 testing insurance coverage rip-off

A Dallas lady admitted in federal courtroom Tuesday that she defrauded well being insurers out of greater than $7 million for COVID-19 exams that by no means passed off.

Connie Jo Clampitt, 52, pleaded responsible to at least one rely of conspiracy to commit well being fraud, punishable by as much as 5 years in jail and a wonderful of $250,000, based on courtroom paperwork. She additionally agreed to return $7.29 million and forfeit belongings seized within the investigation, together with $2.5 million from varied financial institution accounts, two residences, six autos and 6 luxurious watches, the U.S. lawyer’s workplace for the Northern District of Texas stated.

Clampitt’s lawyer, Christopher Lewis, stated she is ready to just accept the results of her actions.

“She has admitted her accountability,” he stated.

Clampitt was arrested in December on the conspiracy cost in addition to 10 counts of well being care fraud, seven counts of aggravated id theft and one rely of conspiracy to commit cash laundering.

Prosecutors alleged Clampitt and three different defendants used non-public affected person data — corresponding to names, dates of delivery and insurance coverage subscriber identification numbers — to submit claims to insurers for COVID-19 testing that was by no means truly carried out. The non-public data was obtained by way of varied clinics the place one of many unspecified defendants labored as a contract lab technician, the U.S. lawyer’s workplace stated.

Prosecutors stated the defendants claimed the COVID-19 testing passed off at nonexistent websites and despatched claims for the exams to main well being insurers together with Aetna, Blue Cross Blue Protect, Cigna, Humana and United Healthcare.

The faux labs submitted roughly $30 million in claims and had been paid greater than $7 million in reimbursements, the U.S. lawyer’s workplace stated.

Circumstances are pending in opposition to the three different defendants: Terrance Barnard, William Paul Grey and Donn Hogg.

“Because the nation struggled to deal with a devastating pandemic, this defendant conspired to swindle insurance coverage suppliers out of tens of millions of {dollars},” U.S. Legal professional Leigha Simonton stated in a written assertion about Clampitt. “She exploited the healthcare system when it was at its most weak, not directly elevating healthcare prices for on a regular basis People.”