Former Louisiana Health Clinic CEO Sentenced to More than Six Years for Defrauding the Louisiana Medicaid Program of Over $1.8 million

Louisiana - A Louisiana man has been sentenced to 6 years and 10 months in prison for defrauding the Louisiana Medicaid Program of over $1.8 million through false medical diagnoses and fraudulent billing of educational programs.

Victor Clark Kirk, 73, of Baton Rouge, Louisiana, was sentenced to 82 months (6 years, 10 months) in federal prison by U.S. District Judge Brian Jackson following his convictions for conspiracy to commit health care fraud and health care fraud. Kirk was also sentenced to three years of supervised release following his prison term and ordered to pay $1,841,527.31 in restitution to the Louisiana Medicaid Program.

Kirk was unanimously convicted after a six-day trial of defrauding the Louisiana Medicaid Program of over $1.8 million and causing false medical diagnoses of children. Kirk was the CEO of St. Gabriel Health Clinic, Inc. (St. Gabriel), a Louisiana non-profit corporation that provided health care services to Medicaid recipients, according to court documents and evidence presented at trial. St. Gabriel provided routine medical services in local elementary and high schools. During the trial, evidence revealed that St. Gabriel practitioners, under Kirk's direction, also provided educational programs, including "Character Counts!" to entire classrooms of students during regular class periods. Character traits such as respect and trustworthiness were taught to students in these educational classes. However, the evidence presented at trial revealed that Kirk was responsible for the fraudulent billing of these programs to Medicaid as group psychotherapy for several years. The evidence also showed that Kirk directed St. Gabriel practitioners to falsely diagnose students, including children as young as kindergarteners, with serious mental health disorders such as impulse control disorder and attention deficit disorder in order to facilitate the fraudulent scheme. Kirk was responsible for over $1.8 million in fraudulent claims for ostensibly group psychotherapy services from 2011 to 2015.

“The sentencing of Victor Kirk demonstrates that no one is above the law,” said U.S. Attorney Ronald C. Gathe, Jr. “Health Care Fraud is a serious problem and I commend the trial team and all of our partners who worked tirelessly to ensure justice for not only the patients but taxpayers as well.”

“Criminals must be punished for their crimes, and today justice was served to Mr. Kirk,” said Louisiana Attorney General Jeff Landry. “Our office will continue to work with our law enforcement partners to protect our State’s most vulnerable and the taxpayers who fund their welfare.”

“It is especially egregious to commit fraud on the backs of children, and all to fund a lifestyle Kirk did not earn or deserve,” said Acting Special Agent in Charge Jason Meadows of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “The damage Kirk inflicted on these kids is immeasurable and may follow them for years. Patient harm is a top priority of HHS/OIG and we will work with our law enforcement partners to relentlessly pursue those who perpetrate it.”

“Instead of using the Louisiana Medicaid Program for its intended purpose, Victor Clark Kirk, the CEO of St. Gabriel Health Clinic, sought to enrich himself by defrauding Medicaid of over a million dollars through the submission of false diagnoses for pediatric patients,” said Douglas A. Williams, Special Agent in Charge, FBI New Orleans. “We thank our partners at the U.S. Attorney’s Office, Middle District of Louisiana; Department of Justice, Criminal Division, Fraud Section; Department of Health and Human Services-Office of the Inspector General; and the Louisiana Medicaid Fraud Control Unit for their strong partnerships and dedication to investigating Medicaid fraudsters.”

The case was investigated by the Louisiana Medicaid Fraud Control Unit, HHS-OIG, and FBI as part of the Gulf Coast Strike Force, which was overseen by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Middle District of Louisiana.

The case was prosecuted by Assistant Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters of the Criminal Division's Fraud Section, as well as Assistant U.S. Attorney Kristen L. Craig for the Middle District of Louisiana.

Through the Health Care Fraud Strike Force Program, the Fraud Section leads the Criminal Division's efforts to combat healthcare fraud. Since March 2007, this program, which consists of 15 strike forces operating in 25 federal districts, has charged over 5,000 defendants, with a total bill of more than $24 billion to federal health care programs and private insurers. Furthermore, the Centers for Medicare & Medicaid Services, in collaboration with the Department of Health and Human Services Office of the Inspector General, is taking steps to hold providers accountable for their involvement in healthcare fraud schemes. More details are available at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.