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Former head of Va. Tech student health insurance indicted

By Julie Newman
Published On: Apr 09 2013 10:40:42 PM CDT
Updated On: Apr 09 2013 04:37:55 PM CDT
Blacksburg, VA -

A federal grand jury has indicted the man in charge of Virginia Tech's student health insurance program on 57 counts.

The sealed indictment was unsealed today.

The company GM-Southwest and its former owner, John Paul Gutschlag, Sr., of Texas, are charged with racketeering, conspiracy, money laundering and fraud charges to the tune of $9 million.

The indictment accuses the company inflated claims, causing students and Virginia Tech to pay higher premiums.

The investigation, led by the IRS, alleges this went on from 2003 through 2010.

Gutschlag could face up to 20 years in prison and fines up to a half million dollars on each count.