7 Cases of Healthcare Fraud Involving Physicians

The following developments involving physicians and healthcare fraud occurred within the past month.

1. Physician Owner of Illinois' Aurora Health Center Indicted for Healthcare Fraud
Joseph M. Tages, MD, owns West Suburban Medical and Surgical Associates in Aurora, Ill., and also operates the Aurora Health Center. He has been indicted for allegedly diverting more than $765,000 from his medical practice and failing to pay income taxes on it.

2. Feds Indict Physician, Pharmacist and 51 Others in Philadelphia Drug Scheme
Federal prosecutors indicted 53 people for alleged participation in an oxycodone distribution ring in Philadelphia. Forty-four of those indicted were arrested yesterday. They have been charged with conspiracy to commit drug trafficking, distribution of controlled substances and healthcare fraud. Family practitioner Norman M. Werther, MD, pharmacist Ihsanullah Maaf and an alleged drug trafficker were named the principals of the conspiracy, which bilked more than $5 million.

3. Physicians, Pharmacists Charged in One of the Largest Drug Scams in Michigan's History
Four physicians, a dozen pharmacists, a psychologist and an accountant have been charged in what the government is calling one of the largest drug scams in Michigan's history. A total of 26 people allegedly engaged in fraudulent activity at more than 20 pharmacies statewide. The scheme involved billing insurers for millions of dollars in fraudulent prescriptions for OxyContin, Vicodin, Xanax and cough syrup with codeine. Participating physicians received kickbacks for writing the prescriptions, as did the patients who agreed to let them bill their insurers.

4. San Antonio Physician Faces 27 Counts of Healthcare Fraud
Herbert Joel Robinson, MD, operator of a general practice and weight-loss clinic in San Antonio, has been indicted in a $100,000 Medicare and Medicaid fraud scheme. He faces 27 counts of healthcare fraud, three counts of mail fraud and one count of aggravated identity theft. From Jan. 2006-Nov. 2009, Dr. Robinson allegedly billed the government for patient visits that never occurred. Patients were allegedly out of town, hospitalized or dead.

5. California Oncologist Sentenced to 18 Months in Prison for Fraud Scheme
The oncologist who ran Pacific Coast Hematology/Oncology Medical Group in Fountain Valley, Calif., was sentenced to 18 months in prison for submitting bills for drugs that cancer patients never received. Glen R. Justice, MD, pleaded guilty to five counts of healthcare fraud in May 2010.

6. Retired Cardiologist Convicted, Faces up to 35 Years in Prison for Unnecessary Stents, Fraudulent Billing
A federal jury convicted John R. McLean, MD, a retired cardiologist, of healthcare fraud relating to the placement of unnecessary coronary stents and the billing of hundreds of thousands of dollars for the procedures. Dr. McLean, who lost medical privileges at Salisbury, Md.-based Peninsula Regional Medical Center in 2007, faces a maximum of 35 years in prison at his Nov. 10 sentencing.

7. Former ED Chief at Children's Hospital of Colorado Pleads Guilty to Prescription Drug Fraud
The former head of the emergency department at Children's Hospital of Colorado in Aurora pleaded guilty to 14 counts of prescription drug fraud. Louis Hampers, MD, pled guilty before U.S. District Court Judge Robert E. Blackburn. As part of a fraud scheme dating back to 2007, he admitted to using aliases to falsify prescriptions to obtain painkillers and other drugs at pharmacies, which he claimed were for personal use.

Related Articles on Healthcare Fraud:

GAO: CMS' Systems to Identify Fraud Fall Short
10 Recent Allegations or Convictions of Medicare Fraud
OIG: Medicaid and Medicare Fraud Investigations May Net $3.4B

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