GOP donor Andy Miller settled federal fraud case for $7.8M


              FILE - In this Oct. 23, 2012, file photo, Republican donor Andy Miller, left, and brother Tracy Miller listen to proceedings at a meeting of the Tennessee Registry of Election Finance in Nashville, Tenn. The Millers on Sept. 13, 2016, agreed to pay $7.8 million to settle allegations of defrauding a federal military health care program (AP Photo/Erik Schelzig)
FILE - In this Oct. 23, 2012, file photo, Republican donor Andy Miller, left, and brother Tracy Miller listen to proceedings at a meeting of the Tennessee Registry of Election Finance in Nashville, Tenn. The Millers on Sept. 13, 2016, agreed to pay $7.8 million to settle allegations of defrauding a federal military health care program (AP Photo/Erik Schelzig)

NASHVILLE, Tenn. (AP) - The business run by wealthy Republican donor Andy Miller has agreed to pay $7.8 million to settle allegations of defrauding a federal military health care program.

The Tennessean reports (http://tnne.ws/2cmamo2 ) that Miller, his brother Tracy and a Florida company called QMedRx Inc. agreed to the settlement with federal prosecutors on Sept. 13.

Persecutors said QMedRx violated the federal "anti-kickback statute" that bans the exchange of anything of value in exchange for government business.

The Millers run Healthmark Investment Trust and have been prominent backers of tea party-styled politicians like perennial congressional candidate Joe Carr and expelled state Rep. Jeremy Durham.

Andy Miller told the newspaper that Healthmark is a minority owner of the Florida company and that the case was settled to avoid the uncertainty and cost of protracted litigation.

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Information from: The Tennessean, http://www.tennessean.com

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