Lexington Man Sentenced in Illegal Kickback Scheme Involving Palmetto GBA

Clayton Sparks, 50, of Lexington, was one of two people sentenced this week in federal court in Columbia for participating in an illegal kickback scheme to promote contractors within Palmetto GBA.

Chief United States District Judge Terry L. Wooten sentenced Sparks to one year and one day in jail, U.S. Attorney Bill Nettles said. Sparks was ordered to pay a $7,500 fine.         

Also sentenced was Daney Xavier, 49, of Potomac, Md. Xavier was sentenced to 15 months in jail.  Xavier had paid the United States $800,000 to settle a related civil claim.

Evidence presented at the change of plea hearing established that Sparks was a software development manager working for Palmetto GBA, which administers Medicare on behalf of the U.S. Department of Health and Human Services, according to a release from the U.S. Attorney’s Office in Columbia. Part of Sparks’ job was to recruit computer programmers, often through outside placement agencies.  

Xavier owned INSYS, which furnished computer programmers to Palmetto GBA.

In his position at Palmetto GBA, Sparks had substantial influence over the hiring of contract programming employees, the release said. Between 2008 and 2012, Xavier paid Sparks to promote his contractors within Palmetto GBA.  This constituted an illegal kickback.

The case was investigated by agents of the Department of Health and Human Services, the Office of the Inspector General, and the Federal Bureau of Investigation.  Assistant United States attorney Winston D. Holliday Jr., of the Columbia office handled the case.