New Orleans Fraudster Ordered To Pay $7 Million
A federal judge sentenced John M. Spivey to pay restitution for his role in a large genetic testing fraud scheme.
Updated on Oct. 22, 2026 in Financial Crime
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John M. Spivey was ordered to pay $7 million in restitution following his involvement in a scheme that defrauded Medicare. The conspiracy involved billing the government for medically unnecessary genetic tests facilitated through telemarketing.
Why it matters
The case highlights the ongoing federal effort to combat large-scale health care fraud where kickbacks and unnecessary testing exploit the Medicare system. The ruling serves as a significant penalty for those involved in generating millions in false medical claims.
A federal judge ordered John M. Spivey to pay $7,002,410.26 in restitution after he pled guilty to the conspiracy. Spivey also received five years of probation, including one year of home confinement, while his co-conspirator Jamie P. McNamara was sentenced to 10 years in prison.
The players
John M. Spivey
He is a defendant who pled guilty to conspiring to defraud Medicare through medically unnecessary genetic testing.
Jamie P. McNamara
He is a co-conspirator who received a 10-year prison sentence and was ordered to pay $174 million in restitution.
The details
The fraud scheme operated between November 2018 and July 2020, during which laboratories submitted over $174 million in false claims to Medicare. Defendants utilized aggressive telemarketing to secure genetic testing orders, which were then signed by telemedicine doctors without legitimate medical consultations.
Timeline
The fraud scheme operated from November 2018 through July 2020.
On October 13, 2026, a judge ordered John M. Spivey to pay $7 million in restitution.
Legal Context
This case follows the pattern of aggressive federal prosecution established by the creation of the National Fraud Enforcement Division in 2026. These efforts target large-scale medical billing fraud to protect the integrity of the national healthcare system.
While this sentencing does not trigger immediate changes to local medical services, it highlights the importance of scrutinizing unexpected genetic testing offers. Residents should remain cautious of telemarketers promising free genetic screenings, as these services are often components of fraudulent billing operations.
The takeaway
Patients should always verify the medical necessity of genetic testing with their primary care physician before consenting to any services offered by unsolicited telemarketers. Protecting your personal medical identity is a critical step in preventing unauthorized Medicare billings.
Further reading
Learn more about local enforcement efforts in the New Orleans Financial Crime section.
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