Posted: 6:42 p.m. Monday, Dec. 19, 2011

Abortion doctor accused of Medicaid fraud

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By Jodie Fleischer

ATLANTA —

A metro-area abortion doctor and his office manager are under arrest, accused of taking hundreds of thousands of dollars in fraudulent Medicaid payments.

A spokesperson for Georgia's Attorney General says Dr. Tyrone Malloy and office manager CathyAnn Warner took more than $380,000 in payments for ultrasounds that were never done, and elective abortions that were prohibited from use of Medicaid funds. The Attorney General's spokesman says that is only allowed when the mother's life is in danger, or in cases of rape or incest.

Malloy owns and operates the Old National Gynecology office in College Park, but received the Medicaid payments at his DeKalb County office on Rainbow Drive. A tip from Georgia's Department of Community Health, which oversees the Medicaid program, launched the investigation.

Channel 2 investigative reporter Jodie Fleischer knocked on the abortion clinic's locked doors on Monday. No one answered, but the camera captured people peering through the office blinds several times. About an hour later, a string of cars, presumed to be driven by employees, abruptly left, stopping briefly to lock the gate behind them.

A DeKalb County grand jury indicted Malloy and Warner for two counts each of Medicaid Fraud. The charges carry up to ten years in prison and a $10,000 fine.

Malloy was arrested and bonded out of jail last week. Deputies picked up Warner late Monday afternoon.

The clinic's website says its physicians are well versed in the changing laws of abortion medicine. They also provide a discount for Medicaid patients.

By phone, a receptionist at Dr. Malloy's DeKalb office told Fleischer to leave a message; that he was in with a patient. He did not return the call.  The office manager, when reached by phone, hung up on Fleischer.

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