NEW ORLEANS — This is an official press release from the U.S. Department of Justice (Criminal Division), published as received.
NEW ORLEANS – JOHN DENNIS MICHAEL PEYROUX (“PEYROUX”), age 58, of Slidell, Louisiana, was sentenced on January 26, 2026 by U.S. District Judge Lance M. Africk for conspiracy to commit healthcare fraud, in violation of 18 U.S.C. §§ 1347 and 1349, in connection with a scheme to bill Medicare for over-the-counter (“OTC”) COVID-19 test kits that were not requested or otherwise ineligible for reimbursement, announced United States Attorney David I. Courcelle.
According to court documents, starting in November 2022, PEYROUX conspired with others to purchase Medicare beneficiary information, including names, Medicare identification numbers, and clearly fabricated recordings of individuals posing as beneficiaries and “requesting” OTC COVID-19 test kits. PEYROUX used that information to bill Medicare through his chiropractic clinic for test kits. On several occasions, PEYROUX billed for beneficiaries who were already deceased, or were in hospice or inpatient care and therefore ineligible to receive OTC COVID-19 tests paid for by Medicare. PEYROUX then misappropriated the credentials of a former nurse practitioner that worked for him and falsely listed the nurse practitioner as the referring provider on fraudulent claims, even though the employee did not treat the beneficiaries or order the tests. In total, in around six months, PEYROUX allegedly billed Medicare approximately $3.3 million in false and fraudulent claims for OTC COVID-19 test kits through his clinic, for which Medicare reimbursed approximately $3.2 million. Under the terms of the plea agreement, PEYROUX agreed to pay over $3.2 million in restitution to Medicare. The government also forfeited over $1 million seized from PEYROUX’s bank accounts.
Judge Africk sentenced PEYROUX to one year and one day in prison, $3,212,761.44 in restitution, 3 years of supervised release, and a $100 mandatory special assessment. PEYROUX’s brother, Steven D. Peyroux, recently pled guilty to his own role in the scheme and is scheduled for sentencing before U.S. District Judge Wendy B. Vitter on May 14, 2026.
U.S. Attorney Courcelle praised the work of Health and Human Services Office of Inspector General, United States Secret Service, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, and Assistant Chief Justin Woodard and Trial Attorney Kelly Z. Walters, of the Department of Justice’s Criminal Division’s Fraud Section, are in charge of the prosecution.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force program. Since March 2007, this program, currently comprised of 8 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
