Local doctor charged in insurance fraud scheme
By Katie O'Toole Monday, September 5th 2016
Dr. John Johnson of Holidaysburg was charged for a second time for federal crimes involving money laundering.
HOLLIDAYSBURG - Dr. John Johnson was charged by a U.S. Florida attorney for his second federal crime.
A release from U.S. District Court said Johnson and 15 other medical professionals across the country have been charged in a $175 million insurance fraud scheme.
The release also said Johnson received illegal compensation in exchange for issuing prescriptions for compounded medications, regardless of medical need.
Federal agents first raided Johnson's offices in 2014, including his doctor's office on East Walnut Street and his business Johnny on the Spot Car Wash.
A year-and-a-half long investigation later, a federal grand jury indicted him after they believed he kept employee payroll taxes instead of turning them in to the IRS.
Federal court documents show he pocketed about $700,000 of his employee's money.
It is unclear whether Johnson was still in practice after the taxes charge.
Documents said that his trial proceedings for that crime were not scheduled to begin until October.