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Condie set to take deal in fraud case

A Powell psychologist who is alleged to have submitted more than $6.8 million worth of fraudulent bills to Wyoming Medicaid has reached a tentative plea deal with federal prosecutors, court records say.

A plea agreement in Gib Condie’s case was filed Monday afternoon in Wyoming’s U.S. District Court, according to court records. The document itself was not made public, meaning the proposed agreement will likely remain unknown until it’s presented in open court on Friday afternoon in Cheyenne. That’s when Condie is set for a change of plea hearing.

A federal grand jury indicted Condie on 234 felony counts of health care fraud in May. He has pleaded not guilty to the charges and declined to comment on the apparent plea agreement this week.

In an interview in May, Condie denied the government’s allegations, saying he provided good services and was pleased with the work that was done.

A trial had been set for early February before U.S. District Court Judge Alan Johnson.

The indictment alleges that Condie and his business, Big Horn Basin Mental Health Group, Inc., made multiple false statements in billing Medicaid, including making false statements about clients’ diagnoses and billing
Medicaid for swimming, hiking, camping, shopping and other activities that didn’t qualify as “therapeutically necessary rehabilitative therapy” under the program’s rules.

The billing took place between June 2012 and February 2016. Assistant U.S. Attorney Eric Heimann has described the nearly $6.85 million worth of payments that Condie received in that timeframe as “theft.”

Condie had paid the money to more than 80 people who’d allegedly provided services to about 300 clients, Heimann wrote in a filing.

In September, Condie’s defense attorney, Steve Kline, had asked for some deadlines in the case to be pushed back. One reason Kline cited for the delay was “ongoing plea negotiations.” He also said the defense would need to better understand the massive amount of materials provided by the government through discovery — enough digital information that it had to be stored on a one-terrabyte hard drive.

Earlier this month, Kline had asked to have more time, until this Friday, to file any pretrial motions.

“The parties are still engaged in ongoing plea negotiations and an agreement will either be reached in the next week or the case will likely end up in trial,” Kline wrote on Oct. 13.

Friday’s change of plea hearing is set for 2:30 p.m. at the Joseph C. O’Mahoney Federal Center in Cheyenne.


  • posted by Shae Anthony

    October 27, 2017 8:44 am

    I'm not sure the facts or evidence surrounding this case have been made public. Sorry that a member of the Powell community is in trouble, but I think Nina F. may be blindly believing a Sunday testimony rather than actual evidence. I think Gib is experiencing the consequences he should be.

  • posted by Lisa

    October 27, 2017 7:22 am

    What evidence is there that this is a good honest medical provider? I think the reason why he is taking a plea deal is that the evidence is overwhelming that he was not being good and honest.

  • posted by Renata Waters

    October 26, 2017 9:36 pm

    First off, it’s Medicaid not Medicare. Secondly, no qualified person in their right mind would even consider billing for what he did and how he missed the system and the innocent employees who trusted him. Mr. Condie knew EXACTLY what he was doing. Too bad he became too prideful and wanted more. Why is healthcare in this nation Lao expensive and messed up? Because idiots like Condie take advantage and try to find loop holes.
    Finally a win here for us professionals who do it right and play by the rules.

  • posted by Shae Anthony

    October 26, 2017 8:53 pm

    To Nina F. It is Medicaid not Medicare. I think you are not aware of the facts of this case. I too am a Medicaid provider and have no problems with the laws of our land. I pray that Wyoming's vulnerable children will rebound from the poor quality care they received by Dr. Gibson and his unlicensed and un educated minions.

  • posted by Nina F.

    October 26, 2017 1:33 pm

    It's disheartening to see good, honest medical providers falsely targeted for doing their best to honestly navigate a extremely flawed, misled, and ill-equipped Medicare billing system. The Medicare billing system is changed so frequently it is tantamount to fraud by our government to even expect a provider to try to conform. As citizens we can only hope and pray that somewhere, somehow someone is able to fight back against all of these false accusations and force change inside the Medicare team. I shutter to think how many other good doctors names are being tarnished by this scapegoating by Medicare.

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