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Medicaid doctor faces prison time, fines in federal indictment

By Staff
From staff and wire reports
Jan. 11, 2002
JACKSON A former Meridian pediatrician could face up to 150 years in prison and $9.5 million in fines after his arrest in Lexington, Ind., on health care fraud.
Dr. Walter Anderson, who once operated Kid's Connection in north Meridian, was arrested on Tuesday in Lexington, Ind., at the Madison State Hospital.
Anderson's son, Walter P. Anderson Jr., was arrested the same day near San Diego. He faces up to 100 years in prison and $8 million in fines.
Both men are named in a 17-count federal indictment that alleges health care fraud, submitting false claims and money laundering. The indictment was issued in December.
The senior Anderson also is charged with misrepresenting the nature of his clinics in Meridian and Laurel.
The federal arrests come four months after Anderson agreed in Hinds County Circuit Court to pay almost $3 million in restitution, fines and reimbursements.
In 1998, state Attorney General Mike Moore charged Anderson with six counts of Medicaid fraud. Moore alleged the doctor falsely billed Medicaid for almost $3.75 million between September 1997 and October 1998.
The $3 million payment plan called for all of Anderson's assets including estates in Lauderdale, Jones and Newton counties to be immediately liquidated.
The money generated would reimburse $2 million to Medicaid, pay a $750,000 civil penalty and pay the $150,000 cost of Moore's investigation. Anderson will pay $1,500 or 25 percent of his adjusted gross income each month whichever is greater to pay money still owed after his assets are sold.