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Former Georgia insurance commissioner sentenced to prison after pleading guilty to health care fraud

In this photo taken June 17, 2010, Georgia State Insurance Commissioner and Republican gubernatorial candidate John Oxendine participates in the gubernatorial debate at the Georgia Press Association annual meeting in Jekyll Island, Ga. (AP Photo/Stephen Morton)
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In this photo taken June 17, 2010, Georgia State Insurance Commissioner and Republican gubernatorial candidate John Oxendine participates in the gubernatorial debate at the Georgia Press Association annual meeting in Jekyll Island, Ga. (AP Photo/Stephen Morton)

A federal judge on Friday sentenced former Georgia Insurance Commissioner John Oxendine to serve three and a half years in prison after Oxendine pleaded guilty to health care fraud.

U.S. District Judge Steve Jones, at a hearing in Atlanta, also ordered Oxendine to pay a $25,000 fine and to share in $760,000 in restitution with Dr. Jeffrey Gallups.

Oxendine, 62, admitted to collecting kickbacks for Gallups in a scheme in which the doctor pushed physicians who worked for him to order and bill insurers for unnecessary medical tests on patients.

Crucially, Oxendine gave a speech at a meeting for Gallups' doctors urging them to order the tests.

Oxendine collected 10 kickback payments through his insurance consulting firm, using most of the money to pay expenses and charitable donations for Gallups. Oxendine himself netted about $40,000, lawyers said.