KNOXVILLE – Special Agents with the Tennessee Bureau of Investigation have obtained indictments for three people in connection with a case involving healthcare fraud at a former medical practice in Knoxville.
In August 2009, TBI Special Agents with the Medicaid Fraud Control Unit received information pertaining to healthcare fraud and the illegal distribution of narcotics at Horizon Family Medicine, formerly located in Knoxville. During the course of the investigation, Agents developed information that between January 2009 and June 2012, Scott McClain, Tina Lawson Smith and Melinda Church were involved in a fraudulent scheme that required patients to undergo unnecessary medical testing and procedures. Further investigation revealed that 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.
Last week, the Knox County Grand Jury returned indictments charging (below, left to right) McLain, Smith and Church with Theft over $60,000 and Computer Crimes over $60,000. On Wednesday, McLain, 47, was arrested in South Dakota by Agents with the U.S. Department of Health and Human Services. He is currently being held 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. The investigation remains active and ongoing. Anyone with specific information pertaining to this investigation should contact the TBI at 1-800-TBI-FIND.