A New Orleans man has been ordered to repay over $7 million in restitution for a healthcare fraud conspiracy.
John M. Spivey, age 55, of New Orleans, was ordered to pay over $7 million in restitution for his role in a conspiracy to commit healthcare fraud, announced U.S. Attorney David I. Courcelle.
Court records say that Spivey conspired with his codefendant, Jamie P. McNamara, age 50, of Missouri, to defraud Medicare by billing for cancer genetic testing and cardiovascular genetic testing that was ineligible for Medicare reimbursement. The testing was ineligible because it was not medically necessary and was procured through the payment of illegal kickbacks and bribes.
McNamara with the assistance of Spivey, operated several laboratories that obtained doctors’ orders for genetic testing from telemarketers and call centers that used aggressive telemarketing campaigns to induce Medicare beneficiaries to agree to receive genetic testing.
A New Orleans man must pay over $7 million in restitution for his role in a healthcare fraud conspiracy. https://t.co/VL4xRu3i5g
— WGNO-TV (ABC) New Orleans (@WGNOtv) October 22, 2026
Purported telemedicine doctors signed orders for genetic testing even though they were neither the beneficiaries’ treating physicians nor performed the consultations, or followed up with the beneficiaries after testing. According to court records, from November 2018 through July 2020, the laboratories operated by McNamara submitted over $174 million in false and fraudulent claims to Medicare for genetic testing and received over $55 million in reimbursements. Both McNamara and Spivey pleaded guilty for their roles in the scheme.
On October 13, 2026, United States District Judge Darrel J. Papillion ordered Spivey to pay $7,002,410.26 in restitution to Medicare, jointly and severally with McNamara. Judge Papillion previously sentenced McNamara to 10 years in prison and $174 million in restitution for his role in the scheme, and Spivey was sentenced to five years of probation, the first year served in home confinement. The court also ordered McNamara to forfeit about $7 million in funds and three vehicles seized before he was indicted.
U.S. Attorney David I. Courcelle praised the work of the U.S. Department of Health and Human Services – Office of Inspector General and the Federal Bureau of Investigation. Deputy Chief Justin M. Woodard and Trial Attorney Kelly Z. Walters, of the Department of Justice’s Fraud Division, and Assistant U.S. Attorney Nicholas Moses, Deputy Chief of Public Corruption for the Eastern District of Louisiana, prosecuted the case. Assistant U.S. Attorney Alexandra Giavotella, Asset Forfeiture Coordinator, handled the forfeiture component, and Assistant U.S. Attorney Churita Hansel, Financial Litigation Coordinator, handled the restitution component.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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