Men Sentenced in Palmetto GBA Kickback Scheme

COLUMBIA, SC—United States Attorney Bill Nettles stated that Clayton Sparks, age 50, of Lexington, and Daney Xavier, age 49, of Potomac, Maryland, were sentenced in federal court in Columbia for a violation of the Anti-Kickback Statute, found at Title 41, United States Code, Section 53. Chief United States District Judge Terry L. Wooten sentenced Sparks to 12 months and one day in jail and Xavier to 15 months in jail. In addition, Sparks was ordered to pay a $7,500 fine. Previously, Xavier had paid the United States $800,000 to settle a related civil claim.

Evidence presented at the change of plea hearing established that Clayton 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. Part of his job was to recruit computer programmers, often through outside placement agencies.

Daney Xavier owned INSYS. INSYS furnished computer programmers to Palmetto GBA.

In his position at Palmetto GBA, Sparks had substantial influence over the hiring of contract programming employees. 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-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.