A Madison man has been sentenced to 30 months in federal prison for his role in a Medicare kickback conspiracy that led to over $1.4 million in fraudulent claims.
Auzie Phillip Smith, Jr., 68, acted as a marketer for various diagnostic laboratories, soliciting and receiving kickbacks for referring biological specimens and orders for molecular diagnostic testing of toenails. He also induced medical providers to refer unnecessary testing in exchange for kickbacks.
The scheme resulted in laboratories submitting over $1.4 million in claims to Medicare, with over $500,000 reimbursed for medically unnecessary services. Smith was ordered to pay $544,822.68 in restitution to the Centers for Medicare and Medicaid Services.
The case was investigated by the Federal Bureau of Investigation and prosecuted by the U.S. Attorney's Office for the Southern District of Mississippi and the Criminal Division’s Fraud Section. This prosecution aligns with the Department of Justice's new National Fraud Enforcement Division and President Trump’s Task Force to Eliminate Fraud.