Contractor Pleads Guilty to Health Care Fraud Scheme

Defrauded Local Hospital of More than $400,000 Using False Invoices;
Used “Spoof” E-mail Service to Falsify Approvals

October 8, 2009

Greenbelt, Maryland - Gary Sean Clayton, age 30, of Frisco, Texas, pleaded guilty today to conspiracy to commit wire fraud, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

Clayton was a part owner of Invictus Solutions, an employee staffing company based in Dallas, Texas, that provided employees to hospitals and other medical providers. In a typical transaction, a hospital would contact Invictus to request an employee, for example, a lab technician. Invictus would locate a suitable employee and assign that person to the hospital. The employee would submit a completed timesheet for their hours worked to a hospital supervisor for approval. Once the timesheet was approved, Invictus would send the hospital an invoice for the employee’s work; the hospital would pay Invictus, who would then pay the employee.

According to the plea agreement, in Spring 2007, Holy Cross Hospital (HCH) in Silver Spring, Maryland, entered into a contract with Invictus for a lab technician. Beginning no later than June 2007, Clayton, the lab technician’s supervisor and another co-conspirator began submitting fraudulent invoices to HCH that artificially inflated the number of hours worked by the lab technician. Clayton and the co-conspirator submitted multiple invoices containing these inflated hours, which were then approved by the lab technician’s supervisor. Based on the supervisor’s approval, HCH paid Invictus.

In June 2008, the lab technician became a full-time HCH employee, had no further relationship with Invictus and was paid directly by the hospital. However, Clayton and his co-conspirator continued to submit fraudulent invoices to HCH for the lab technician’s work, which the supervisor approved and HCH paid. In early 2009, the supervisor’s department ran out of funds to pay for the fraudulent invoices. The supervisor told Clayton how to use an alternative method by which the fraudulent invoices could be approved and paid. Clayton used a “spoof” e-mail service to send fraudulent e-mails to an HCH accounts representative purporting to be from an appropriate HCH supervisory employee, approving the fraudulent invoices. Based on these fraudulent approvals, the invoices were paid.

Clayton and his co-conspirators shared the proceeds of the fraud.

Through this scheme, Holy Cross Hospital was defrauded of more than $400,000.

Clayton faces a maximum sentence of 30 years in prison for wire fraud. As part of his plea agreement Clayton will also be required to forfeit a residence in Texas, two vehicles and a boat. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 29, 2009 at 9:30 a.m.

United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service for its investigative work. Mr. Rosenstein commended Assistant United States Attorney Jonathan Su, who is prosecuting the case.



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