FORT SMITH -- The federal government wants a western Arkansas man charged with more than a dozen federal crimes to go to jail until his trial.
U.S. Magistrate Judge Mark E. Ford signed an order Tuesday resetting a hearing on release conditions for Billy Joe Taylor, 43, of Lavaca, for 10 a.m. Dec. 20 in Fort Smith, according to court records. The hearing was originally scheduled for 1 p.m. Thursday.
Taylor pleaded not guilty during his arraignment in U.S. District Court on Nov. 23 to 16 charges of health care fraud and one charge of money laundering. Ford set Taylor's jury trial for 9 a.m. Jan. 10 before District Judge P.K. Holmes.
Taylor was released May 26 on a $100,000 secured bond with conditions of release.
However, a petition filed Nov. 17 accuses Taylor of violating those conditions in multiple ways. Taylor denied the allegations, and Ford allowed him to remain out on bond pending his Dec. 20 hearing.
The petition was signed by Ryan Forsyth, U.S. pretrial services/probation officer. It accuses Taylor of violating state and federal criminal law prohibiting fraud and theft while out on bail.
It alleges Taylor contacted the New York-based company GenTech Scientific about purchasing used laboratory equipment in about June. GenTech agreed to buy three used machines and wired payments totaling $165,000 to someone else's bank account at American Heritage Bank at Taylor's direction, the petition says. Although GenTech received the machines, the necessary software was never provided, which was valued at about $75,000.
GenTech also agreed to buy three other machines from Taylor for $170,000, the petition states. The company wired $85,000 July 28 and another $7,500 Sept. 20 to the aforementioned bank account as prepayment for the machines per Taylor's instruction, which were to be delivered to GenTech in early October. However, neither the machines nor a refund had been delivered as of Nov. 9, according to the petition.
Taylor also violated conditions of his release regarding travel, the petition says. Taylor's travel was restricted to the Western District of Arkansas unless given approval beforehand. However, he could travel to Oklahoma for medical reasons, as well as the Southern District of Florida for attorney consultation, with prior approval.
The petition asserts the government obtained records from the River Spirit Casino Resort in Tulsa, Okla., showing Taylor stayed there at least 23 times since his release.
"It should be noted that Mr. Taylor was only approved to travel to Tulsa, Okla., for medical purposes a few times," the petition states. "Further, at no time did Mr. Taylor request approval to stay overnight at the above-noted casino."
In addition, the petition accuses Taylor of violating a condition instructing him to avoid all contact with anyone who is or may be a victim or witness in the investigation or prosecution. Taylor has had "continued contact" with three people he knew to be potential witnesses, the petition says. The three worked for Taylor and were familiar with his business and financial dealings, the petition states.
John Wesley Hall, one of the attorneys representing Taylor, filed a motion for continuance of Taylor's release conditions hearing Monday.
The motion states the defense counsel underestimated how much time they needed to prepare for the hearing. Ford's order granting the motion states the federal government was opposed to the motion.
Ford said Taylor faces up to 10 years in prison for each of his charges if found guilty, as well as fines. Taylor was indicted Nov. 2, court records show.
Indictment
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NoneCourt documents state Billy Joe Taylor engaged in a scheme pertaining to diagnostic laboratory testing that was medically unnecessary and not ordered by medical providers from February 2017 to May, as well as testing not provided as represented. This included urine drug testing, covid-19 testing and other clinical laboratory services.
Taylor’s indictment states Taylor used multiple diagnostic testing laboratories he controlled and directed to submit more than $100 million in false and fraudulent claims to Medicare.
Source: U.S. Department of Justice news release