On March 21, 2014, DeKalb Superior Court Judge C. J. Becker sentenced Tyrone Cecil Malloy, M.D., to four years in prison and six years probation on two counts of Medicaid Fraud, O.C.G.A. § 49-4-146.1(b)(2). Malloy was found guilty by a jury on both counts of the indictment on March 10, 2014, following a two-week trial.
Malloy was the owner of Old National Gynecology, a medical practice devoted to the performance of first-trimester elective abortions. Federal funds may not be used to pay for abortions and services associated with abortions, except in circumstances under which the pregnancy is a result of rape or incest or circumstances under which continuation of the pregnancy would endanger the life of the mother. The Georgia Medicaid program is supported by state and federal tax dollars. For several years, Malloy engaged in a scheme to defraud Georgia Medicaid by billing for office visits associated with abortions and for ultrasound procedures which were never performed. In total, he fraudulently billed Georgia Medicaid for over $386,000.
The judge will hold a restitution hearing at a later date to determine the exact amount of restitution Malloy will be ordered to pay the Georgia Department of Community Health.
The case was prosecuted on behalf of the state by Senior Assistant Attorney General Nancy Allstrom and Assistant Attorney General James Mooney. The case was investigated by Investigator Shakethia Morgan, Investigative Auditor Amy Snow, Nurse Investigator Beth Ann Teague and Criminal Analyst Tish Murray, all of the Georgia Medicaid Fraud Control Unit, a Division of the Office of the Attorney General. Nurse Analyst Wylene Moore initiated the original investigation on behalf of the Georgia Department of Community Health.