Amtrak OIG-supported investigation leads to guilty plea in Florida money laundering case

July 09, 2019 |  Investigations Press Release

JACKSONVILLE, Fla. – The owner of a substance abuse treatment center pleaded guilty today in U.S. District Court for his role in a $57 million money laundering and pass-through billing scheme.
According to a U.S. Department of Justice press release, Kyle Ryan Marcotte, 36, of Jacksonville Beach, pleaded guilty to a one-count information charging him with conspiracy to commit money laundering. As part of his guilty plea, Marcotte agreed to a forfeiture judgment of $10,220,281.42.
According to admissions made as part of his guilty plea, Marcotte was the owner of a Jacksonville Beach substance abuse treatment facility. Marcotte entered into an arrangement with a laboratory owner to send urine samples from patients at his facility to the lab for drug testing in exchange for receiving 40 percent of the insurance reimbursements. To date, Amtrak’s health care plan has been billed in excess of $300,000 by Marcotte’s facility.
The lab owner, in turn, arranged with the managers of Campbellton–Graceville Hospital and Regional General Hospital Williston, rural hospitals in Florida, to have the testing billed to private insurers through the hospitals and reimbursed at favorable rates under the hospitals’ in-network contracts with insurers. Marcotte also admitted that he brokered deals with other substance abuse treatment centers to have their drug tests billed through the hospitals in exchange for Marcotte receiving 10 percent of the insurance reimbursements, while the other substance abuse facilities would receive 30 percent of the insurance reimbursements. Amtrak’s health care plan was billed in excess of $900,000 through Campbellton-Graceville Hospital, related laboratories, and other rural hospitals.

Amtrak OIG, the FBI, Office of Personnel Management OIG, Department of Labor OIG, and the U.S. Attorney’s Office, Middle District of Florida, supported the joint investigation.

More information is available in the U.S. DOJ press release:

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