A St. Louis County man and an Alabama woman have been indicted for their involvement in an illegal kickback scheme related to genetic and COVID-19 tests administered to seniors.
Willie Ann Cleveland, 41, from Tuscaloosa, Alabama, and Timothy C. Peoples, 56, from Bridgeton, Missouri, were formally charged on August 7, 2024, in U.S. District Court in St. Louis. Both were indicted on one count of conspiracy to receive and pay health care kickbacks. Peoples appeared in court on Friday, entering a plea of not guilty. Cleveland was arrested on August 14, 2024, and also pleaded not guilty on the same day.
According to the indictment, from 2017 through August 7, 2024 (7 years, 1 month), Peoples was involved in collecting biological specimens for genetic and COVID-19 testing, mainly targeting Medicare patients at senior citizen centers in eastern Missouri. The indictment alleges that Cleveland facilitated the connection between Peoples and laboratory personnel, allowing them to establish the kickback scheme. It further claims that the duo created fake contracts to disguise the kickbacks as a “monthly flat marketing fee.”
One specific allegation mentions that Cleveland received $9,000 from a laboratory on March 1, 2022, and transferred $7,000 to Peoples three days later. The indictment also accuses Cleveland and Peoples of offering a physician $100 for each lab test ordered as part of the kickback scheme.
Both defendants are also charged with making false statements to federal agents during the investigation.
It’s important to note that an indictment contains only allegations, and all defendants are presumed innocent until proven guilty in a court of law.
The conspiracy charge carries a potential penalty of up to five years in prison, a $250,000 fine, or both.
The U.S. Department of Health and Human Services, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
