Indictment charges abortion doctor, office manager with Medicaid fraud

By David Ibata

The Atlanta Journal-Constitution

A metro Atlanta physician and his former office manager have been charged with Medicaid fraud after they billed the government nearly $400,000 for abortion services – which are barred from federal funding – and for ultrasounds not performed, authorities said.

Dr. Tyrone Cecil Malloy and CathyAnn Edwards Warner are charged in an indictment handed up Dec. 8 by a DeKalb County grand jury with two counts each of Medicaid fraud, according to a news release issued Monday by the Georgia Attorney General’s Office.

Malloy was arrested last week and has been released on bond to await trial, Channel 2 Action News reported. An arrest warrant was issued for Warner, and DeKalb and Clayton county authorities working together took her into custody Monday afternoon.

The case originated with a tip from the state Department of Community Health, which administers Medicaid funds, Channel 2 reported.

Efforts to contact Malloy on Monday were unsuccessful.

The alleged fraud occurred at Malloy’s Old National Gynecology, a medical practice in the 6200 block of Old National Highway in College Park, whose website says it specializes in first-trimester abortions.

According to the indictment, between Dec. 9, 2007 and Aug. 9, 2010, the defendants billed the Georgia Medicaid program approximately $131,615 for new patient visits when, in reality, the visits were for elective abortions.

The Georgia Medicaid program is funded jointly by the state and the U.S. Department of Health and Human Services. Under federal law known as the Hyde Amendment, federal funds cannot be used for elective abortion services; nor are abortions covered by Georgia Medicaid, the indictment states.

Malloy and Warner also are charged in the indictment with billing Georgia Medicaid about $255,024 for detailed ultrasounds that actually were never performed during the same period from 2007 through 2010.

The indictment was sought in DeKalb rather than Fulton County because the Medicaid payments were sent to Malloy’s Metropolitan Atlanta Ob-Gyn office on Rainbow Drive in the Decatur area, said Lauren Kane, spokeswoman for the state Attorney General’s Office.

Medicaid fraud is punishable by one to 10 years in prison and a $10,000 fine, authorities said.