Condie set to take deal in fraud case

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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.

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