Two Charged With Submitting Fake COVID-19 Testing Claims

Summary

A press release of the U.S. Attorney's Office for the Northern District of Texas, dated Friday, December 16, 2022, announcing that Terrance Barnard, 39, and Connie Jo Clampitt, 51, were indicted on charges of conspiracy to commit healthcare fraud, healthcare fraud, aggravated identity theft and conspiracy to commit money laundering. According to court documents, the pair allegedly received more than $7 million for fraudulent COVID-19 testing claims from insurers including Blue Cross Blue Shield of Texas, Cigna, United Healthcare, Aetna, Humana and Molina Health Care. The release states that Barnard allegedly obtained patient information as a contract lab technician and that the two allegedly billed for testing at labs that did not exist. Law enforcement seized more than $1.5 million during the investigation.

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                                       Department of Justice
                                         U.S. Attorney’s Office
                                       Northern District of Texas


FOR IMMEDIATE RELEASE                                                        Friday, December 16, 2022

     Two Charged With Submitting Fake COVID-19 Testing
                         Claims
Two individuals were charged with submitting fraudulent COVID-19 testing claims to multiple
insurance agencies, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Terrance Barnard, 39, and Connie Jo Clampitt, 51, the owners of several alleged fake diagnostic
laboratories, were indicted on Dec. 5 on one count each of conspiracy to commit healthcare fraud,
ten counts each of healthcare fraud, seven counts each of aggravated identity theft, and one count
each of conspiracy to commit money laundering. The defendants were arrested Thursday and made
their initial appearances Friday morning.

“The COVID-19 pandemic has presented the most challenging circumstances our healthcare
providers and insurers have faced in generations. Schemes to financially exploit the system when
providers and insurers are facing these monumental challenges must be dismantled, and those
responsible must be held to account,” said U.S. Attorney Leigha Simonton.

According to court documents, the pair allegedly received more than $7 million for fraudulent
COVID-19 testing claims from Blue Cross Blue Shield of Texas, Cigna, United Healthcare, Aetna,
Humana, and Molina Health Care.

Mr. Barnard allegedly used his position as a contract lab technician at various medical clinics to
surreptitiously obtain patient names, addresses, dates of birth, and insurance subscriber
information.

He and Ms. Clampitt then allegedly represented to the patients’ insurers that they had COVID-19
testing performed at sophisticated diagnostic laboratories, when no such testing was performed and
no such labs existed.

They also allegedly opened bank accounts for their purported labs (TC Diagnostics, ME Diagnostics,
and Rhine Enterprises dba PHR Diagnostics), deposited fraudulently-obtained reimbursement
checks into those accounts, and then transferred the proceeds into personal bank accounts. They
allegedly used the fraudulently-obtained funds to purchase real estate and luxury vehicles.

During the course of the investigation, law enforcement seized more than $1.5 million.

An indictment is merely an allegation of criminal conduct, not evidence. Mr. Barnard and Ms.
Clampitt are presumed innocent until proven guilty in a court of law.

If convicted, they face up to up to ten years in federal prison for each count of health care fraud,
conspiracy to commit health care fraud, and conspiracy to commit money laundering, and up to two
years in federal prison for each count of aggravated identity theft. They will also be required to forfeit
any proceeds or property traceable to the commission of the offenses of which they’re convicted.

The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security
Administration, the Dallas office of the Department of Labor – Office of Inspector General, and the
Texas Department of Insurance Fraud Unit Fort Worth Field Office conducted the investigation.
Assistant U.S. Attorney Renee Hunter is prosecuting the case; Assistant U.S. Attorney Dimitri Rocha
is helping handle the forfeiture.
Topic(s):                                            Contact:
Financial Fraud                                      Erin Dooley Press Officer 214-659-8707
                                                     erin.dooley@usdoj.gov
Component(s):
USAO - Texas, Northern


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