Tuesday October 22nd, 2024 4:09PM

Former Georgia insurance commissioner, now a federal prisoner, surrenders law license

By The Associated Press

ATLANTA (AP) — Former Georgia Insurance Commissioner John Oxendine, now in federal prison, has surrendered his law license after pleading guilty to conspiracy to commit health care fraud.

The Georgia Supreme Court, in a brief decision on Tuesday, accepted Oxendine's surrender, meaning he can no longer practice law in the state.

U.S. District Judge Steve Jones in July sentenced Oxendine to three-and-a-half years in prison. The 62-year-old Oxendine is currently an inmate at the minimum security federal prison camp in Pensacola, Florida. The Federal Bureau of Prisons projects a September 2027 release date.

Oxendine admitted to urging physicians who worked for Dr. Jeffrey Gallups to order unnecessary medical tests on patients and bill insurers for them. Prosecutors said Oxendine also devised a plan to collect $260,000 in kickbacks from medical testing company Next Health through his consulting firm and funnel most of the money to Gallups.

Oxendine paid a $150,000 charitable contribution and $70,000 in attorney’s fees on Gallups′ behalf, prosecutors said, keeping $40,000 for himself.

The judge fined Oxendine $25,000 and ordered him, along with Gallups, to share in paying $760,000 in restitution. Gallups pleaded guilty to health care fraud before he could be indicted.

Oxendine ran for governor in 2010 but lost the Republican primary. The Georgia Ethics Commission began investigating campaign finance violations in 2009, alleging Oxendine illegally used campaign funds to buy a house, lease cars and join a club.

Oxendine settled that case in 2022, agreeing to hand over the remaining $128,000 in his campaign fund while admitting no wrongdoing.

He was also accused of accepting a $120,000 through a bundled contribution, 10 times the legal limit, from two Georgia insurance companies while running for governor. A judge ruled state officials waited too long to pursue Oxendine on those charges.

  • Associated Categories: Associated Press (AP), AP Online - Georgia News
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