Virginia Tech health insurance fraud suspect pleads not guilty - WSLS 10 NBC in Roanoke/Lynchburg Va

Virginia Tech health insurance fraud suspect pleads not guilty

Posted: Updated:

ABINGDON, Va. (AP) - The former owner of a Texas company that provided health insurance to Virginia Tech students has pleaded not guilty to racketeering, conspiracy, money laundering and fraud charges.
    
Records show 73-year-old John Paul Gutschlag Sr. entered his plea Tuesday in federal court in Abingdon. A jury trial was set to start Sept. 23. Gutschlag was released on $10,000 unsecured bond.
    
A 57-count federal indictment accuses Gutschlag and GM-Southwest Inc. of overstating claims by more than $9 million to boost profits.
    
The Frisco, Texas-based company is a third-party administrator of student health insurance. Major insurance carriers provide coverage but pay GMS a fee for collecting premiums and paying claims. The indictment says that by overstating claims, GM was able to charge higher premiums and discourage competitors from bidding to provide the service.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Prostitution sting nets 31 arrests

    Prostitution sting nets 31 arrests

    Tuesday, April 20 2010 11:21 PM EDT2010-04-21 03:21:00 GMT
    31 people are in trouble with the law after a three day prostitution sting in Richmond. Police told NBC12 they targeted specific areas where residents and business owners complained about the illegal activity.
  • Floydfest wraps up 'Revolutionary' festival

    Floydfest wraps up 'Revolutionary' festival

    Monday, July 28 2014 5:42 PM EDT2014-07-28 21:42:30 GMT
    This weekend wrapped up Floydfest 2014, an event thirteen years in the making that WSLS proudly sponsors.
    This weekend wrapped up Floydfest 2014, an event thirteen years in the making that WSLS proudly sponsors.
  • Bedford Sheriff Department searches home on Nemmo Road

    Bedford Sheriff Department searches home on Nemmo Road

    Tuesday, July 29 2014 4:19 PM EDT2014-07-29 20:19:56 GMT
    There was a flurry of police activity Monday in Bedford County.
    There was a flurry of police activity Monday in Bedford County.
Powered by WorldNow

WSLS 10, P.O. Box 10
Roanoke, VA 24022-0010

Telephone: 540.981.9110
Fax: 540.343.3157
Email: news@wsls.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.