Two physicians in California agreed to settlements to resolve allegations relating to a fraud scheme that caused the false claims to Medicare.
Zachary Lipman, MD, of Chico, Calif., paid $290,000 and Michael Woo-Ming, MD, of Murrieta, Calif., agreed to pay $85,000, according to a March 20 news release from the Justice Department.
Both settlements are connected to a fraud scheme run by Kevin Brown, a chiropractor in California. Mr. Brown used his companies to receive Medicare reimbursements for surgically implanted neurostimulators, even though the companies neither performed surgeries or implanted neurostimulators.
In a previous settlement, Dr. Brown stipulated that he and his company taped disposable “electroacupuncture” device called “Stivax” to their patients’ ears.
According to the Justice Department, Dr. Lipman solicited and received unlawful kickbacks for referring his patients to Mr. Brown for the Stivax devices.
The settlement with Dr. Woo-Ming resolves allegations that his companies, one of which he co-owned with Mr. Brown, submitted false claims to Medicare, the release said.
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