Texas hospital CEO sentenced to federal prison for role in health care kickback conspiracy

US Attorney's Office, Eastern District of Texas, January 15, 2025

TYLER, Texas – A former Texas hospital chief executive officer has been sentenced to 36 months in federal prison for conspiring to violate the Anti-Kickback Statute, announced U.S. Attorney Damien M. Diggs.

Jeffrey Paul Madison, 49, of Burnet, Texas; Susan L. Hertzberg, 66, of New York, New York; Matthew John Theiler, 58, of Pinehurst, North Carolina; David Weldon Kraus, 66, of Maryville, Tennessee; and Thomas Gray Hardaway, 52, of San Antonio, Texas, were found guilty by a jury on November 30, 2023, following a seven-week-long trial before U.S. District Judge Jeremy D. Kernodle.

Madison was sentenced to 36 months in federal prison by Judge Kernodle on January 15, 2025.  Madison also agreed to pay $5,343,630 to resolve allegations under the False Claims Act involving illegal payments to physicians for laboratory referrals in violation of the Anti-Kickback Statute.

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