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.
- Updated ETSU student charged with intimidation for gorilla mask act at Black Lives Matter protest
- Carter County deputy, former 'Southern Justice' star, charged with murder
- Updated Fire at old General Mills building now suspected as arson
- Updated Bays Mountain Dam turns 100 this year
- Updated Doctors more careful when prescribing antibiotics