Joseph Mayotte, the former owner and operator of Bradley Chiropractic Clinic, will be sentenced on federal wire fraud and failure to file tax returns charges on Aug. 29 in Peoria.
Mayotte, of Kankakee, agreed to plead guilty last February.
The clinic’s former office manager, Constance “Connie” T. Leadingham, of Watseka, had previously pleaded guilty to bank fraud and filing false income tax returns. She was sentenced in March to 12 months in prison and ordered to pay $449,071 in restitution. She will be on parole three years after her release.
FBI agents, along with agents from the FDIC Office of Inspector General raided the office, 956 W. Broadway St., on Oct. 8, 2015.
Mayotte admitted that from January 2007 to October 2015, he executed a scheme to defraud Blue Cross/Blue Shield Insurance by submitting false billing claims. The false claims typically were made on behalf of patients for whom the clinic had not provided any services or were made in excess of the actual services provided.
As a result, Blue Cross/Blue Shield overpaid the clinic more than $250,000. Mayotte then used the money for his own benefit.
In addition, Mayotte admitted that he failed to file federal income tax returns for tax years 2011 through 2014.
Leadingham was charged with filing false income tax returns for tax years 2011, 2012 and 2013.
Leadingham admitted that as the clinic’s office manager, she participated in the scheme by submitting fraudulent billing claims to the company. Leadingham then wrote checks payable to herself from the clinic’s checking account in addition to her salary.
As a result, Leadingham obtained more than $380,000 to which she was not entitled. Further, Leadingham admitted that she did not disclose the additional income that she had fraudulently obtained from the clinic for her tax filings in 2011, 2012 and 2013.
The charges are the result of investigation by the FDIC Office of Inspector General; Internal Revenue Service Criminal Investigations and the FBI. Assistant U.S. Attorneys Eugene L. Miller and Timothy A. Bass represented the government in the case prosecutions.
The maximum statutory penalty for wire fraud is 20 years in prison; for bank fraud the penalty is up to 30 years in prison.