Health Insurance Co. Charged In $9M Va. Tech Fraud

Law360, Washington (April 10, 2013, 1:24 PM EDT) -- Federal prosecutors indicted a Texas-based student health care company and its former owner on Tuesday for bilking Virginia Tech out of more than $9 million in fraudulently overstated insurance claims, culminating in 57 counts of fraud, racketeering, conspiracy and money laundering.

GM-Southwest Inc. and its former owner John Paul Gutschlag Sr. face 57 counts of racketeering, conspiracy, mail fraud, wire fraud and money laundering for their alleged six-year insurance fraud scheme, according to the unsealed grand jury indictment in Virginia federal court.

GM-Southwest provided health insurance...
To view the full article, register now.