Jamie P. McNamara, a 49-year-old man from Kansas City, Missouri, has admitted guilt to running a scheme that defrauded Medicare by billing millions for unnecessary cancer and cardiovascular genetic tests. McNamara’s labs in Louisiana and Texas falsely billed Medicare over $174 million and received more than $55 million in payments by using illegal methods to secure genetic test orders.
How the Fraud Scheme Worked
McNamara’s scheme involved telemarketing companies that pressured Medicare patients into agreeing to genetic testing. The test orders were signed by so-called telemedicine doctors who never actually treated or consulted with the patients. These doctors simply approved tests without real medical need or follow-up.
To keep the fraud hidden, McNamara paid illegal kickbacks disguised as fake contracts and shuffled billing between his labs to avoid detection. He also hid his ownership by listing family members as owners on official documents. The scheme ran for about 18 months, costing Medicare millions and exploiting vulnerable patients.
Legal Action and Investigation
The government seized luxury cars and froze over $7 million in bank accounts linked to McNamara. He was initially on pretrial release but violated bond terms by fleeing a DUI arrest and removing his ankle monitor, which led to his detention.
McNamara pleaded guilty to conspiracy to commit health care fraud. His sentencing is set for September 9, and he could face up to 10 years in prison depending on the judge’s decision.
Statements from Officials
Matthew R. Galeotti, head of the Justice Department’s Criminal Division, condemned the scheme for damaging public trust and wasting taxpayer money. Acting U.S. Attorney Michael M. Simpson called the prosecution “meticulous” and emphasised the need to protect Medicare and public confidence.
FBI Special Agent Jonathan Tapp highlighted how McNamara took advantage of vulnerable patients with useless tests, while Christian J. Schrank from HHS-OIG stressed that such fraud is criminal and harms federal health programs.
Ongoing Efforts to Combat Health Care Fraud
The case is being investigated by the FBI and the Department of Health and Human Services Office of Inspector General (HHS-OIG). The Criminal Division’s Fraud Section leads national efforts to fight health care fraud through strike forces operating across the U.S. Since 2007, these efforts have charged thousands of defendants linked to over $30 billion in fraudulent billing.
Medicare and Medicaid are also working hard to hold providers accountable and prevent future fraud. More information about these efforts is available at the Department of Justice’s website.
