First Defendant Sentenced In "Cream Scheme" Gets 2 Years In Federal Prison

  • Wednesday, July 15, 2020

The first of five defendants to be sentenced in the "Cream Scheme" has been ordered to serve two years in federal prison.

Jayson Montgomery, 39, appeared before Judge Sandy Mattice on Wednesday at the Federal Courthouse in Winchester, Tn. After a lengthy trial, he had been found guilty of two counts of receipt of illegal remuneration - his only convictions.

Montgomery was initially facing a guideline range of 63-73 months.

At sentencing, it was determined to be 41-51 months.

Montgomery urged "compassion," saying he had already been financially ruined. He said he and his wife will lose their house and she will need to find another place to stay as he is away.

The defendant said, "I do want to repay my debt." He said he has been working two jobs. However, Judge Mattice did not order restitution in the case. He said instead that Montgomery should "make every effort to put his life back together and support his family."

The government said Montgomery’s commissions were $337,068. 

The judge said Montgomery "got involved pretty late in the game"  in the health care fraud involving compounded creams that were billed to insurance for as much as $15,000 a jar.  But he said he "made some very poor choices."

Judge Mattice noted that insurance companies pretty quickly stopped paying for the compounded creams. "That faucet got turned off."

Montgomery was told to report to federal prison within 60 days.

He was represented by Chattanooga attorney Dee Hobbs.

Prosecutors were Perry Piper and Franklin Clark.

Breaking News
Latest Hamilton County Arrest Report
  • 3/28/2024

Here is the latest Hamilton County arrest report: ADERHOLT, FELICIA DAWN 1110 ST CLAIR ST DUNLAP, 37327 Age at Arrest: 37 years old Arresting Agency: HC Sheriff Booked for Previous ... more

Signal Mountain Must Determine How To Use Remainder Of ARPA Funds
  • 3/27/2024

The town of Signal Mountain has $358,637 remaining from the American Rescue Plan Act (ARPA) funds it received and there must be a plan in place by the end of the year for how the money will be ... more

Chattanooga Man Gets 21-Year Sentence For Fentanyl Death Of 19-Year-Old
Chattanooga Man Gets 21-Year Sentence For Fentanyl Death Of 19-Year-Old
  • 3/27/2024

A 25-year-old Chattanooga man, was sentenced to 21 years in federal prison for supplying drugs that led to the death of 19-year-old Charlotte Gallant. Jonathan Bash appeared before Judge Curtis ... more