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Doc at Abortion Clinic Eric Holder’s Wife Co-Owns Headed to Prison for Medicaid Fraud

by Steven Ertelt | Washington, DC | LifeNews.com | 3/24/14 11:14 AM

National

An indicted abortion practitioner who works at a abortion clinic in a building owner by Attorney General Eric Holder’s wife is heading to prison after being convicted of Medicaid fraud.

Georgia-based abortion practitioner Tyrone Cecil Malloy was responsible for killing a patient in an abortion and he faced charges related to Medicaid fraud. A Georgia grand jury indicted Malloy on Medicaid fraud charges in 2011. A state medical board twice reprimanded the abortion doctor.

malloyFollowing a guilty verdict by a jury earlier this week, DeKalb Superior Court Judge C. J. Becker sentenced Malloy to four years in prison and six years probation on two counts of Medicaid fraud. The judge will hold a restitution hearing at a later date to determine the exact amount of restitution Malloy will be ordered to pay the Georgia Department of Community Health.

LifeNews reoprted in December 2011 that Malloy faces accusations of accepting hundreds of thousands of dollars in Medicaid payments that were fraudulent.

Tyrone Malloy and his abortion facility office manager were arrested, according to a spokesman for the office of the Georgia Attorney General. Malloy and office manager CathyAnn Warner reportedly took in more than $380,000 in payments for pre-abortion ultrasounds Malloy never did and abortions that did not qualify for reimbursement under Medicaid.

Malloy and Warner were indicted by a grand jury on two counts of Medicaid fraud and, if they are convicted, they face 10 years in prison and a $10,000 fine. After his arrest, Malloy posted bond.

Federal rules allow for Medicaid funding for abortions only if they are done in the very rare cases such as saving the life of the mother or rape or incest.

Holder has ties to Malloy and that may help explain why Holder has failed to prosecute abortion practitioners who run afoul of federal laws and why he has been eager to prosecute pro-life advocates who protest outside of abortion centers.  Holder’s wife and sister-in-law co-own, through a family trust, the building where Malloy operated.

Fulton County tax records show Holder’s wife and sister-in-law own the building, located at 6210 Old National Highway, College Park, Ga. A statement from the Georgia Department of Law shows the building was home to Old National Gynecology, the practice of abortion practitioner Tyrone Cecil Malloy. A Human Events report from 2012 shows Holder failed to disclose his wife’s ownership of the building. The attorney general’s financial disclosure reports for 2008 through 2011 show Holder neglected to report his wife’s co-ownership.

Previously, the investigative web site Watchdog.Org reported Malloy said fraud charges he’s facing are politically motivated and based on unconstitutional state Medicaid laws.

Malloy’s attorneys asked the Georgia Supreme Court on Monday to reverse a lower court’s ruling denying Malloy’s motion to dismiss the indictment.

“The prosecution of this case is a mockery of justice,” Malloy’s attorneys wrote in a brief filed Monday.  “The state is using its vast police powers to harass, persecute, and undermine one of its citizens to further an obvious political agenda.”

Lauren Kane, a spokeswoman for the Georgia Department of Law, declined to comment on the allegations, saying it is part of a “pending case which our office is prosecuting.” Kane’s office is required to file its response to the brief with the Georgia Supreme Court by Dec. 17.

Catherine Davis, a founding member of the anti-abortion groups National Black Prolife Coalition and the Restoration Project, said Malloy’s allegations are ludicrous.

“This case has been out there for more than a year,” Davis said. “And for (Malloy) to say that he wasn’t prosecuted under the previous Democratic regime and now the government has caught up with him and is pursuing criminal charges that probably should have been brought 20 years ago – that somehow that’s political shenanigans – is just ludicrous. It has nothing to do with politics. It has everything to do with following the laws of the state and the federal government.”

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Davis, the pro-life activist whose work kick-started the Watchdog.org investigation, believes the real purpose of the appeal is to strike down the Hyde Amendment.

“Given Malloy’s ties to U.S. Attorney General Eric Holder and the fact that Holder has not pursued criminal charges against abortionists makes me think that they are going to try to use this case in particular to strike down the Hyde Amendment by saying its unconstitutionally vague,” Davis said.

“I think that perhaps this is why the attorney general has not pursued charges against abortionists because he now has a case in which his long-time family friend is giving him the opportunity to challenge the constitutionality of the Hyde Amendment. I absolutely think that is what is going on.”

Malloy runs the Old National Gynecology abortion business in College Park, but the television station indicates he received the Medicaid payments at another DeKalb County office. State officials received a tip from Georgia’s Department of Community Health, which runs the Medicaid program in Georgia, about the fraud.

WSBTV sent a reporter to the abortion facility for an on-camera interview but no one answered the door even though employees peered through blinds at the reporters. An hour later, employees at the abortion facility appeared to get in their vehicles and left the premises.

As Human Events notes, Malloy has had numerous malpractice issues.

In 1999, one of his patients lost a baby shortly after birth, according to Georgia Composite Medical Board records. The Composite State Board of Medical Examiners determined that the woman had not received proper treatment. Malloy was publicly reprimanded, ordered to receive additional training and fined $5,000, according to the records.

In 2008, he received another public reprimand, was ordered to receive even more training and fined $10,000 after one of his patients died shortly after a botched abortion, according to the Medical Board records.

In September 2011, Malloy filed papers with the Georgia Secretary of State’s Office to terminate the Old National Gynecology corporation. However, his medical license remains active, according to the Composite State Board of Medical Examiners.

“To the best of our knowledge, Dr. Malloy is still performing abortions in the Atlanta area despite the indictment for Medicaid fraud,” Georgia Right to Life spokeswoman Suzanne Ward said.