Pain Clinic Owner Sentenced, L5 Medical Holdings to Pay Nearly $5 Million in Restitution

Operation Mountain Highlands Nets Greg Barnes 45 Months in Federal Prison ROANOKE, Va. – John Gregory “Greg” Barnes—a former mortgage broker who, seeking a “recession proof” business model, purchased pain clinics throughout the Western District of Virginia (including in Lynchburg, Madison Heights, Christiansburg, and Woodlawn)—was sentenced today to 45 months in federal prison for healthcare fraud and illegal prescription drug conspiracies Additionally, Barnes and L5 Medical Holdings, the business entity he controlled, jointly agreed to pay 4,888,426.11 in restitution to Medicare and Virginia Medicaid and to forfeit $250,000 to the United States. Barnes was the last defendant awaiting sentencing as part of Operation Mountain Highlands—an investigation that resulted in convictions and years of prison time for a half-dozen medical professionals and businesspeople associated with the L5 pain clinics. As part of their plea agreements, two doctors and a nurse also permanently surrendered their medical licenses, and Barnes and L5’s Chief Operating Officer, Jennifer Adams, agreed never to do business in the Western District of Virginia again. Barnes, 59, of South Carolina, pled guilty in July 2023 to conspiring to commit healthcare fraud, distribute Suboxone (buprenorphine) without a legitimate medical purpose, and use DEA registration numbers of other people to distribute controlled substances. Barnes’s company, L5, also pled guilty to the same crimes, as well as conspiracy to distribute fentanyl, oxycodone, hydrocodone, and morphine without a legitimate medical purpose. “This office will seek clear accountability against those who masquerade as medical professionals to line their pockets at the expense of patients and taxpayers,” Acting United States Attorney Robert N. Tracci said. “Those posing as good citizens and healthcare providers must be held accountable. Everyone deserves care and protection from those entrusted with their well-being. Unfortunately, this group, including Barnes, took advantage of the healthcare system for their own gain. We are committed to ensuring justice for those harming our communities and will work tirelessly to hold these individuals responsible,” said Christopher Goumenis, Special Agent in Charge of the DEA Washington Division. “By defrauding both insurance companies and patients, criminals make health care more expensive for working class Virginians,” said Attorney General Jason Miyares. “I am pleased that the courts have rendered an appropriate verdict against those who put profit over patient care.” According to court documents, in 2014, with no medical training, Barnes bought a medical practice through his company, L5 Medical Holdings. L5 operated pain management clinics, which involved the prescribing of prescription opioids and opioid addiction treatment medications, including Suboxone. Barnes conducted a feasibility study that identified Lynchburg, Virginia, as a prime location for an initial pain management clinic. After Barnes began operating his pain clinics, they became more focused on prescribing Suboxone and opioids, with less focus on interventional treatments. Barnes and L5 operated the clinics in a manner that prioritized revenue maximization over patient care. Providers were encouraged to limit patient visits to 15 minutes and to see as many as 30 patients per day. At Barnes’s direction, medical providers with L5 followed the opinion of non-medical professionals in making medical decisions, including whether a patient should be treated for opioid addiction or for pain management, whether a patient should receive a prescription, and what type of drug should be prescribed. Patient interactions with non-medical professionals were improperly billed to Virginia Medicaid and Medicare, including by billing under providers who had not seen the patient. On some occasions, L5 employees billed insurance for patient visits under the name of doctors who were not even in the same city or state as the patient. With Barnes in charge, L5 implemented a urine drug testing policy principally based on insurance reimbursements rather than patient care—specifically, to order the maximum amount of drug tests that insurance policies would pay for, regardless of medical need. To avoid losing millions of dollars in revenue that resulted from charging Medicare and Virginia Medicaid under that bill-to-the-max policy, Barnes and L5 refused to implement a random drug testing policy, even when advised by medical professionals to do so. Employees stated one L5 doctor, Wendell Randall, was a “train wreck,” “quack,” and “shitshow.” Despite being aware of such concerns, and even acknowledging Randall failed to show up for work and had made “major mistakes” that were “enough for him to lose his [medical] license,” Barnes continued to employ Randall. Other convictions and sentences as a result of Operation Mountain Highlands include: Duane Dixon, a former doctor at L5, who pled guilty to concealing healthcare fraud and conspiring to illegally prescribed highly addictive opioid painkillers to at-risk patients, was sentenced to 40 months in prison in June 2025, and ordered to pay over $1,000,000 in fines and restitution. Jennifer Adams, L5’s former chief operating officer, was sentenced to 36 months in federal prison for her role in concealing and assisting with L5’s schemes. Adams was also ordered to pay over $3,000,000 in restitution. Charles Wilson Adams (no relation to Jennifer Adams), who was falsely held out as a medical doctor and made treatment recommendations for L5 patients, received a 24-month prison sentence and was ordered to pay $30,000 in fines and forfeiture. Wendell Randall, a former doctor who rented out his credentials to others at L5 so they could prescribe Suboxone but was himself rarely physically present at L5 clinics, was sentenced to 18 months in prison in March 2024. Debra Shaffer, a nurse practitioner with L5, was sentenced to jail time and a $5,000 fine in October 2023.