In a significant healthcare fraud case, Keaton Langston, a former business associate of James Biden, has pleaded guilty to his involvement in a large-scale scam.
The Department of Justice reported that Langston, aged 39, confessed to overbilling for unnecessary tests and orders on behalf of companies in which he had a financial interest.
The press release from the Attorney for the United States Caroline Sadlowski highlighted Langston’s role in a healthcare fraud scheme that resulted in losses exceeding $51 million for Medicare.
The plea was made before U.S. District Judge Michael E. Farbiarz in Newark federal court, where Langston admitted to conspiring to commit health care fraud.
According to court documents and statements presented, Langston and his associates utilized pharmacies, durable medical equipment (DME) companies, and a laboratory as part of their fraudulent activities.
They engaged in offering kickbacks and bribes to doctors in exchange for orders related to DME, genetic cancer screening tests, and compounded medications.
Subsequently, they submitted claims for reimbursement without considering medical necessity and channeled a portion of the proceeds as payment for the illicitly obtained orders.
The fraudulent conduct resulted in approximately $51 million worth of claims being submitted to Medicare and other health care benefit programs.
Langston personally received around $10 million from these reimbursements.
It was noted that James Biden had past associations with Langston but is not believed to have been involved in the fraudulent scheme. However, there were connections between them through various business ventures.
Langston established Fountain Health, a lab company, and offered its services to Americore Health before it went bankrupt. Records revealed that James Biden had ties with Fountain Health before connecting with Americore.
There were financial transactions involving loans provided by Americore to James Biden as well as funds being allegedly passed on to Joe Biden.
The New York Post explains:
Keaton Langston founded Fountain Health, a lab company, in May 2017 and offered its services to rural hospital operator Americore Health, which later went bankrupt. Records show James Biden was involved with Fountain Health in 2017 before connecting with Americore, which provided him in $600,000 in loans in 2018 as he allegedly vowed to use his political connections to secure foreign investors. James passed $200,000 of the funds to Joe Biden in an alleged loan repayment.
Shortly after the lab firm launched, Joey Langston emailed James Biden and his son Keaton and three others on July 12, 2017, about an upcoming “meeting for Fountain Health partners,” Politico reported in February. “Jim will report to the group the results of his discussions earlier today with a contact at [Blue Cross Blue Shield],” the elder Langston wrote. “There will also be discussion about how to proceed with the Union contacts that have been made by Jim and Keaton, within the last two weeks.”
James Biden has sought to distance himself from Langston amid these developments. His attorney has emphasized his client’s ethical conduct despite evidence suggesting otherwise.
Keaton Langston now faces potential imprisonment of up to 10 years along with a fine of $250,000. Sentencing is scheduled for October this year.
