Feds secure millions in Medicaid waste, fraud, abuse case in Georgia, other states

ATLANTA — Georgia will benefit from a portion of another $27.5 million agreed to by the owner of a defunct medial lab accused of Medicaid fraud, the U.S. Justice Department announced Thursday.

Kevin S. Murdock, former CEO and owner of the now-defunct laboratory Premier Medical, Inc. agreed to the terms, acknowledging he was likely to lose in a lawsuit brought against him by the federal government and the states of Georgia, Colorado and South Carolina.

“The scheme perpetuated by the defendants in this case was fueled by greed and kickbacks,” said U.S. Attorney Bryan Stirling for the District of South Carolina, which pursued the case on behalf of the federal and state governments.

Murdock’s attorney, John Sten, said his client agreed to the resolution to avoid the cost, time and uncertainty of a trial, noting the consent judgment included no finding or admission of wrongdoing.

“Kevin has consistently maintained that he did nothing improper,” Sten said.

The plaintiffs alleged Premier Medical conspired with others in targeting Medicaid beneficiaries for medically unnecessary genetic testing that could cost as much as $12,000 in Georgia.

In 2018 and 2019, they traveled to the three states and set up tables in public spaces in low-income areas, such as bus stops, dollar stores and street corners, hoping to lure Medicaid beneficiaries, the U.S. Attorney’s Office said.

The governments also sued both Premier and Freedom Medical Labs, LLC in 2021 for fraud, waste and abuse against Medicaid, saying they were aware that orders and patient samples were obtained using kickbacks, in violation of the federal Anti-Kickback Statute.

The judgment resolves claims brought by a whistleblower who worked for Premier Medical.

The latest agreement brings the total amount in judgments and settlements to $114 million. The scheme cost Georgia’s Medicaid program $7 million.

Carr attacks Jones over self-financing of his gubernatorial campaign

ATLANTA — Georgia Attorney General Chris Carr launched an attack against his Republican primary opponent for governor Thursday, calling for an investigation of Lt. Gov. Burt Jones’ $10 million loan to his own campaign.

“In his 2022 financial disclosure, Jones reported a $12 million net worth with only $700,000 in liquid assets,” Carr’s campaign said. “Now he claims to have loaned $10 million to his leadership committee — 14 times what he previously disclosed. Either he misrepresented his finances then or he’s misrepresenting them now, and Georgians deserve the truth.”

Jones’ camp promptly dismissed the allegation, which was detailed in a complaint to the State Ethics Commission Thursday.

“Not surprised by this weak attempt to get attention — it’s exactly what you’d expect from a campaign that’s losing steam with many months to go until Election Day,” Jones campaign spokeswoman Kendyl Parker said.

Carr was the first leading Republican to announce his candidacy. Jones then jumped into the race last week.

Mandatory campaign finance disclosures they filed last week show each raised about $3 million from donors. But Jones — an executive in a family-owned oil company — leapt far ahead by adding another $10 million of his own money. He benefits from a 2021 law that allows him to collect unlimited sums due to his role as lieutenant governor.

The law authorized so-called leadership committees as fundraising vehicles. The governor also has one, as do legislative leaders. Whoever wins the primaries for governor and lieutenant governor can also have one.

On the Democratic side, former Atlanta Mayor Keisha Lance Bottoms and state Sen. Jason Esteves, a former member of the Atlanta school board, had each raised about $1 million. State Rep. Derrick Jackson from Tyrone raised less than a tenth as much.

King’s Hawaiian to expand food plant in Hall County

ATLANTA – A food company founded in Hawaii but now based in California will grow its Georgia presence with a $54 million plant expansion in Hall County, Gov. Brian Kemp announced Thursday.

The investment by King’s Hawaiian in Oakwood will create 135 jobs.

“For nearly 15 years, King’s Hawaiian has proven to be an incredible partner in creating quality jobs in Northeast Georgia,” Kemp said. “Expansions like these are an important part of our economic development work, helping create further opportunities in growing communities.”

King’s Hawaiian was founded in 1950 by the Taira family in Hilo, Hawaii. Since coming to Georgia in 2010, the company has grown to support more than 800 jobs in the Peach State.

“This expansion represents a major milestone in our journey,” said Mark Taira, the company’s CEO. “Georgia has been an essential part of our success.”

The expansion will add a new production line at the 150,000-square-foot Oakwood plant, producing additional flavors of King’s Hawaiian Pretzel Bites.

With operations due to begin in the second quarter of next year, the company will be hiring for positions in management, maintenance, food safety, and quality control. For more information on those openings and to apply, click on kingshawaiian.com/careers.

The state Department of Economic Development’s Global Commerce team worked on the project in partnership with the Greater Hall Chamber of Commerce and Georgia EMC.

Georgia sets all-time record for jobs

ATLANTA – The number of jobs in Georgia topped 5 million last month for the first time in history, the state Department of Labor reported Thursday.

Georgia’s unemployment rate, meanwhile, held steady at 3.5% in June, sixth-tenths of a point lower than the national jobless rate.

“Businesses big and small showed up day after day – hiring, investing and believing in Georgia’s commitment to growth,” state Commissioner of Labor Barbara Rivera Holmes said Thursday. “That consistency has kept us the No.-1 state for business 11 years running.”

To reach that historic jobs number, the number of jobs in the Peach State rose by 9,100 last month. Job sectors hitting record highs in June included health care and social assistance, which posted a gain of 623,300 jobs; and leisure and hospitality, which grew by 522,100 jobs.

Sectors with the most job gains in June included health care and social assistance, with an additional 3,900 jobs; entertainment and recreation, which gained 3,500 jobs; and administrative and support services, with a gain of 3,100 jobs.

The durable goods manufacturing sector lost 2,300 jobs last month, followed by state government, which fell by 1,600 jobs. The accommodation and food services sector declined by 1,100 jobs.

Georgia’s labor force increased slightly in June to nearly 5.4 million. The number of employed Georgians rose by 2,802 almost 5.2 million.

Unemployment declined by 2,597 in June to 186,417, but initial unemployment claims increased by 522 to 19,657.

New Georgia Senate committee to mull repealing state income tax

ATLANTA – Lt. Gov. Burt Jones Thursday announced the creation of a state Senate committee that will consider eliminating Georgia’s income tax.

Jones, who presides over the Georgia Senate, announced last week he will seek the Republican nomination for governor next year. He signaled in his opening campaign video that, if elected, he would push to get rid of the tax.

Legislative Republicans and conservative tax policy advocates have long called for abolishing Georgia’s income tax to help the state compete for jobs with neighboring states.

“Among southeast states, only South Carolina has a higher income tax rate than Georgia,” Jones said Thursday. “If we wish to remain the No.-1 state for business and keep our state competitive, we must expand on the progress made over the past four years to eliminate Georgia’s income tax.”

Term-limited Gov. Brian Kemp has steered legislation through the General Assembly gradually reducing the state’s income tax rate.

This year, the Republican-controlled legislature passed a Kemp-backed bill  to cut the tax rate from 5.39% to 5.19% retroactive to the beginning of the current tax year. Democrats who opposed the measure argued it would benefit primarily wealthy taxpayers.

The 11-member Georgia Senate Committee on Eliminating Georgia’s Income Tax will include eight Republican senators and three Democrats. It will be chaired by Sen. Blake Tillery, R-Vidalia, who also heads the Senate Appropriations Committee.

The panel will begin meeting later this summer and will have until Dec. 15 to wrap up its work and make recommendations.