The former owner of a Texas company that provided health insurance to Virginia Tech students has pleaded not guilty to racketeering, conspiracy, money laundering and fraud charges.
Records show 73-year-old John Paul Gutschlag Sr. entered his plea Tuesday in federal court in Abingdon. A jury trial was set to start Sept. 23. Gutschlag was released on $10,000 unsecured bond.
A 57-count federal indictment accuses Gutschlag and GM-Southwest Inc. of overstating claims by more than $9 million to boost profits.
The Frisco, Texas-based company is a third-party administrator of student health insurance. Major insurance carriers provide coverage but pay GMS a fee for collecting premiums and paying claims. The indictment says that by overstating claims, GM was able to charge higher premiums and discourage competitors from bidding to provide the service.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.