Vicksburg native indicted on $180 million health care fraud

Vicksburg native Mitchell “Chad” Barrett, 54, now of Gulf Breeze, Florida, David “Jason” Rutland, 41, of Bolton, Mississippi, and Thomas “Tommy” Shoemaker, 56, of Rayville, Louisiana, were charged on May 27, 2020, the U.S. Attorney’s Office announced on Friday.

The three men are alleged to have conspired in a scheme to defraud numerous health care benefit programs of more than $180 million, including more than $50 million from federal programs, between September 2011 and January 2016.

Wade Walters

At least 13 others have been convicted in relation to the scheme since investigations began, including another local man, Wade Walters. Walters pleaded guilty to one count of  conspiracy to commit false claims in a San Diego federal court in 2019 in a separate case, and was indicted in Mississippi last September.

Barrett and Walters attended Warren Central High School together.  Barrett went on to serve as the District 1 trustee on the Warren County School Board from 1998 to 2004. Both Barrett and Walters are considered to be key players in the fraudulent scheme.

Prosecutors in the case allege that pharmacies were formulating, marketing, and billing insurance companies for expensive compound medications that were medically unnecessary for patients, and offering kickbacks to health care providers for the prescriptions. In an attempt to cover their tracks, they are said to have laundered the ill-gotten gains through high-ticket purchases such as real estate, luxury cars and precious gems.

For more information, visit the Department of Justice website.