3 indicted in Knoxville healthcare fraud scheme


KNOXVILLE (WATE) – A Knox County Grand Jury returned indictments against three people for healthcare fraud at a former medical practice in Knoxville.

Scott McClain, Tina Lawson Smith and Melinda Church were charged with theft over $60,000 and computer crimes over $60,000. Tennessee Bureau of Investigation said in August 2009 their agents started investigating allegations of health care fraud and the illegal distribution of narcotics at Horizon Family Medicine.

Agents developed information between January 2009 and June 2012 that McClain, Smith and Church were involved in a fraudulent scheme that required patients to undergo unnecessary medical testing and procedures. TBI says, McLain, a physician, along with Smith and Church, a nurse practitioner, devised the scheme in an effort to generate more revenue for their medical practice.

McLain, 47, was arrested in South Dakota by agents with the United State Department of Health and Human Services. He is in the Union County Jail in South Dakota, pending extradition to Tennessee. On Thursday, Smith, 46, was arrested in Knoxville and Church, 61, was arrested in Morristown. Both were booked into the Knox County Jail and released on a $10,000 bond.

TBI said they are continuing to investigate the case. Anyone with specific information pertaining to this investigation should contact the TBI at 1-800-TBI-FIND.

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