TOPEKA, Kan. — The owners of the Plainville Livestock Commission in Rooks County have been charged with carrying out a check kiting scheme that cost banks millions of dollars, U.S. Attorney Stephen McAllister said Thursday in a news release.

A grand jury in Topeka returned the indictment Wednesday. The indictment can be seen here.

Tyler Gillum, 47, and his wife, Camden Gillum, 50, both of Plainville, are charged with 31 counts of bank fraud, one count of making a false statement to the Small Business Administration in an application for a $1.5 million loan, and one count of making a false statement to Almena State Bank in an application for a $500,000 line of credit.

The indictment alleges the Gillums defrauded Almena State Bank in Almena; Landmark Bank in Manhattan; Colorado East Bank and Trust in Lamar, Colo.; Astra Bank in Scandia; TBK Bank in Dallas; Guaranty State Bank in Beloit; and The Bank in Oberlin.

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The indictment alleges investigators examined unfunded checks and wire transfers totaling more $2 billion sent by Tyler Gillum as part of the scheme. That included 409 wire transfers and 7,584 checks. Tyler Gillum, formerly a loan officer for Montezuma State Bank, owned and operated with his wife Plainville Livestock Commission. In advertisements for the business, they said: “The sale barn facility was first established in 1950 and is situated in the heart of Cow-Calf Country. We pride ourselves in offering individualized attention to marketing your livestock.”

The indictment defines check kiting as a form of check fraud that takes advantage of the time between presentment of a check and the actual receipt of funds (“the float”) to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow written checks to clear that otherwise would bounce.

Investigating agencies included the U.S. Department of Agriculture – Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation – Officer of Inspector General, the Federal Housing Finance Agency – Office of Inspector General and the U.S. Small Business Administration – Office of Inspector General. Assistant U.S. Attorney Rich Hathaway is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

— Office of U.S. Attorney Stephen McAllister

WASHINGTON – Joseph P. Galichia M.D., a Wichita, Kansas, cardiologist, has agreed to pay $5.8 million to resolve allegations that he and his medical group, Galichia Medical Group, P.A. (GMED), violated the False Claims Act by improperly billing federal health care programs for medically unnecessary cardiac stent procedures, according to a media release from the U.S. Department of Justice.

Galichia also agreed to a three-year period of exclusion from participation in any federal health care program. The settlement relates to a lawsuit in which the United States intervened on Dec. 12, 2014.

“This settlement reflects the Department of Justice’s commitment to ensuring the safety of federal health care program beneficiaries and that taxpayer monies are properly spent,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.

“Patient safety is critically important,” said U.S. Attorney Stephen McAllister for the District of Kansas. “Performing medically unnecessary procedures puts patients at risk and defrauds federal health care programs.”

“When a physician bills the government for medically unnecessary procedures, both patients’ health and taxpayers can end up paying the price,” said Special Agent in Charge Steve Hanson of the Office of Inspector General for the U.S. Department of Health and Human Services. “OIG is excluding Dr. Galichia from participation in Medicare, Medicaid, and other federal health care programs, and we will continue to work with our partners to protect the health and welfare of Medicare beneficiaries.”

The government contended that Galichia and GMED knowingly submitted false billings from Jan. 1, 2008, through Dec.31, 2014, for surgical procedures in which Galichia implanted coronary stents that were not medically necessary. The allegedly false billings were submitted to Medicare, the Defense Health Agency, and the Federal Employees Health Benefits Program.

This is the government’s third False Claims Act settlement with Galichia and GMED. In 2009, Galichia and GMED paid $1.3 million to settle allegations that they submitted claims for services not provided or lacking proper documentation. In 2000, Galichia and GMED paid $1.5 million to settle allegations that they submitted claims for a higher level of service than provided, billed twice for the same services, and billed for services not provided.

The settlement announced resolves allegations in a lawsuit filed by Aly Gadalla M.D., in the United States District Court for the District of Kansas. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Dr. Gadalla will receive approximately $1.16 million.

The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the U.S. Attorney’s Office for the District of Kansas and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG, the FBI, the Defense Health Agency on behalf of the TRICARE program, the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, and the Office of Personnel Management, Office of Inspector General.

TOPEKA, Kan. (AP) — Fire officials in Topeka are investigating what caused a massive fire that tore through a downtown warehouse.

The fire was reported Wednesday evening at the Trails Market and Gallery, and firefighters battled the flames into early Thursday morning. All that remains of the warehouse is an empty brick shell. No injuries were reported.

The fire spread to the Kansas Avenue Lofts, which opened only months ago. Firefighters say the blaze scorched the northeast end of the four-floor apartment building, but there was no indication early Thursday that the fire had gotten inside the lofts.

There were no immediate damage estimates from the fire. Fire investigators from both the city and state planned to begin the process Thursday morning of determining how and where the fire started.

By JOHN HANNA

TOPEKA, Kan. (AP) — Republican legislators on Wednesday reversed actions by Kansas’ Democratic governor to reshape the state budget to her liking, but they couldn’t save a GOP tax relief plan and had their work briefly delayed by a loud protest in favor of expanding Medicaid.

Rep. @BrendaLandwehr urging colleagues to override the Governor’s budget vetoes. #ksleg pic.twitter.com/5iXb7ckjSq

— Dan Hawkins (@DanHawkinsKS) May 29, 2019

The GOP-controlled Legislature overrode Democratic Gov. Laura Kelly’s vetoes of several items in the next state budget, including an extra $51 million payment to the state’s public pension system to help boost its long-term financial stability. She had argued for socking away more funds in the state’s cash reserves as a hedge against a future economic downturn.

Republicans failed to override Kelly’s veto of a tax bill aimed at providing relief to businesses and individuals paying more in state income taxes because of changes in federal tax laws at the end of 2017. The governor argued that it would “decimate” the state budget as it saved taxpayers roughly $240 million over three years.

Lawmakers’ last scheduled day in session, often short and quiet in past years, turned raucous because of a protest for Medicaid expansion in the Senate gallery. When demonstrators refused to stop singing and chanting, the Senate halted its work to clear the gallery and floor — and a Capitol Police officer required reporters to leave the chamber temporarily.

Kelly’s inability to win passage of a plan to expand the state’s Medicaid health coverage for up to 150,000 additional people was her biggest setback since taking office in January. The House passed a plan in March but the Senate didn’t debate it because GOP leaders wanted further study and a vote on the issue next year.

“Lord, hear our prayer! We want health care!” the Rev. Sarah Oglesby-Dunegan, a Unitarian minister from Topeka, shouted from the gallery as the Senate took up budget issues.

Kelly has clashed with top Republicans most on taxes, pension funding and Medicaid expansion. Supporters say Medicaid expansion would provide health coverage to tens of thousands of poor and working-class families who cannot afford any private insurance or who are struggling to pay for it. Republican critics fear it would prove expensive for the state despite the federal government’s promise to cover most of the cost.

Lawmakers approved a record $18.4 billion budget for the fiscal year that begins in July, with extra money for public schools, higher education, social services and prisons.

The pension system for Kansas teachers and government workers is less than 70 percent funded over the long-term and GOP leaders argue that any extra step to close the gap is worth doing.

“This particular funding is just another step to getting this 800-pound gorilla off of our back,” said state Rep. Jim Kelly, a moderate Republican from southeastern Kansas who isn’t related to the goveror.

Laura Kelly also vetoed extra funds for community mental health centers and money targeted to reading and technical education programs in public schools.

Republican leaders had lawmakers vote on all of the budget vetoes in one package to increase their chances of getting the needed two-thirds majorities to override them. The votes were 27-11 in the Senate and 86-30 in the House, where four Democrats broke with the governor.

“Those were the worst things ever to cut from the budget,” said Sen. Molly Baumgardner, a conservative Kansas City-area Republican.

But Rep. Jim Ward, a Wichita Democrat, chided Republicans for supporting the additional spending while pursuing tax relief that he said would make the spending harder to sustain. Laura Kelly’s spokeswoman, Ashley All, said GOP lawmakers “failed to exercise fiscal responsibility.”

The House voted 78-39 to override the governor’s veto of the tax bill, but supporters needed 84 votes for a two-thirds majority in the 125-member chamber. Kelly also vetoed a larger GOP tax relief bill in March, and in Wednesday’s vote, six Republicans broke ranks with their leaders.

Top Republicans argued that it is unfair that some Kansans are automatically paying more in state taxes because of the federal tax changes, without any intervention by legislators.

Lawmakers had not expected to debate Medicaid expansion Wednesday. Advocates have been pushing expansion for seven years, stymied by Republican governors’ opposition until Kelly took office.

About 40 protesters stood outside the Senate chamber before it convened, chanting and singing. Nine went into the gallery to sing and chant slogans such as “Love God! Love People!” after Oglesby-Dunegan started the protest.

Capitol police and doorkeepers closed the gallery and tried to get the demonstrators out. Wagle’s aides tried to clear the Senate floor — though Democrats declined to leave.

Legally protected peaceful protest is consistent with some of the best traditions of American dissent. But sadly, today’s events were far from peaceful. The demonstrations were pure obstructionism that stifled debate, placing a roadblock in front of democracy. #ksleg pic.twitter.com/R7ndbWLtcQ

— Susan Wagle (@SenatorWagle) May 29, 2019

Wagle’s office tweeted that it wanted to clear the floor for safety reasons. But her chief of staff, Harrison Hems, told reporters they were giving demonstrators “an audience” by shooting pictures and recording video, making it harder to restore order.

He added, “It’s a privilege to have a press pass.”

Wagle later said her office wasn’t singling out reporters, only trying to clear the floor and end the demonstration. The Kansas Sunshine Coalition, an open-government advocacy group, filed a complaint with the state attorney general’s office.

Hems said nine demonstrators were arrested, but the Kansas Highway Patrol, which oversees the Capitol police, said all but Oglesby-Dunegan were merely escorted out of the gallery. She received a summons to appear in court on a possible misdemeanor charge of illegally interfering with public business, Patrol Lt. Stephen Larow said.

CASS COUNTY— One person died in an accident just after 11:30p.m. Wednesday in Cass County.

The Missouri State Highway Patrol reported a 2003 Honda driven by Joseph C. Boss, 18, Peculiar, was southbound on Route C just north of 223rd Street. The vehicle ran off the road, struck a ditch, rolled and the driver was ejected.

Peculiar EMS transported Boss to Belton Regional Medical Center where he died. He was not wearing a seat belt, according to the MSHP.

JEFFERSON CITY, Mo. (AP) — Missouri’s health department said Wednesday that the license for the state’s only abortion clinic is in jeopardy because of a litany of problems, including “failed surgical abortions in which patients remained pregnant” and concerns about patient safety.

The Missouri Department of Health and Senior Services responded to the lawsuit filed a day earlier by Planned Parenthood that seeks to keep open the clinic in St. Louis. A judge on Thursday will hold a hearing on the request for a restraining order that would stop the state from its threat to not renew the license.

Republican Gov. Mike Parson said it would be “reckless” for a judge to weigh in until the state takes action. Planned Parenthood’s license for its St. Louis clinic is set to expire Friday unless the state renews it. But Parson said the state health department found “a series of deficiencies” at the clinic.

He did not elaborate, citing an ongoing investigation, but the Missouri Department of Health and Senior Services later put out a news release saying concerns were initially raised after inspections in March. The agency cited “at least one incident in which patient safety was gravely compromised.” It also cited what it called “failed surgical abortions” in which women remained pregnant, and an alleged failure to obtain “informed consent.” The department did not elaborate on the allegations.

“Planned Parenthood’s apparent disregard for the law, their failure to complete complication records, and the accuracy of medical records are all serious concerns that need to be addressed prior to any license renewal,” Parson said. “They still have two days to comply.”

Planned Parenthood Federation of America President and CEO Dr. Leana Wen said Parson’s comments “are simply not based on medicine, facts, or reality.” A court hearing on the group’s lawsuit is set for Thursday morning.

“Governor Parson and his health department continue to move the goal post on compliance issues and then threaten Planned Parenthood’s license. Planned Parenthood has been responsive to every demand, including those that interfere with high quality medical care, yet the Governor continues to insist that our license is in jeopardy,” said Dr. Colleen McNicholas, an abortion provider at Planned Parenthood of the St. Louis Region.

According to Planned Parenthood’s lawsuit, the state health department visited the clinic in April to investigate a patient complaint. Planned Parenthood says the agency’s subsequent “investigation has identified a large number of potential deficient practices requiring explanation by the physicians directly involved in patient care, as well as the attending physicians.”

The lawsuit says the state wanted to interview seven physicians, including medical fellows who no longer provide care at the clinic. It says two staff doctors agreed but the others did not, and Planned Parenthood can’t compel them because they’re not staff.

The health department said the refusal of physicians to be interviewed “obstructs the State’s ability to verify that this facility is in compliance.”

According to the lawsuit, the health department won’t decide on renewing Planned Parenthood’s license until the investigation is complete.

If the license is not renewed, the organization says Missouri would become the first state without a functioning abortion clinic since the 1973 Roe v. Wade Supreme Court decision.

The dispute comes days after Parson signed a bill banning abortions on or beyond the eighth week of pregnancy, with no exceptions for rape or incest. Missouri is among half a dozen states that have passed sweeping anti-abortion measures.

If the St. Louis clinic no longer can provide abortions, the nearest clinics performing abortions are in a Kansas suburb of Kansas City and in Granite City, Illinois, just across the Mississippi River from St. Louis. The Kansas clinic is about 260 miles (420 kilometers) from St. Louis.

Even before the latest legislation, Missouri already had some of the most restrictive abortion regulations in the nation, including a requirement that doctors performing abortions have partnerships with nearby hospitals.

A total of 2,910 abortions occurred in 2018 in Missouri, according to provisional data provided by the state health department. That includes 433 abortions at eight weeks of pregnancy and 267 at six weeks or earlier.

JEFFERSON CITY, Mo. (AP) — Gov. Mike Parson and his wife will move out of the Governor’s Mansion next month to make way for a $3.3 million renovation.

The St. Louis Post-Dispatch reports that the work will include upgrading the heating and cooling system, fixing longstanding plumbing problems and restoring interior services. The work should take about a year.

The Parsons will move to existing housing at the Missouri National Guard compound east of Jefferson City.

The mansion’s first occupant was Gov. Benjamin Gratz Brown in 1872. The first floor includes a 17-foot-high Great Hall, two parlors, a library and a divided dining room. It has 13 bedrooms on the second and third floors.

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