Former head of Va. Tech student health insurance indicted
Updated On: Apr 09 2013 04:37:55 PM CDT
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.
Copyright © 2014 by WCYB. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.