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.


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