A federal grand jury in Chattanooga, Tennessee, returned a 35-count indictment against a doctor from McDonald, Tennessee, for wire fraud, mail fraud, health care fraud and money laundering. The indictment alleges that from May 2008 until December 2012, the doctor fraudulently billed Medicare for Botox injections he did not give and received $7,482,968 in reimbursement from Medicare for these injections. Between 2008 and 2012, he allegedly purchased only 254 vials of non-FDA approved Botox, purchased no FDA approved Botox, and billed Medicare for 17,766 vials. The doctor allegedly submitted claims for reimbursement electronically and received payment by checks mailed to his office.
According to the indictment, the money received from Medicare for the fraudulent claims was deposited into an Athens Federal Community Bank account from which he made a transfer of $35,000 to a Tennessee Valley Federal Credit Union account. This doctor allegedly also made payments of $58,519 and $78,851 to two different car dealerships from the Tennessee Valley Federal Credit Union account.
If convicted, the doctor faces a term of up to 20 years in prison for each count of wire and mail fraud and up to 10 years in prison for each count of health care fraud and money laundering. Each count also provides for a fine of up to $250,000 and a supervised release term of up to three years. The indictment sets out forfeiture allegations which indicate that, if convicted, he may forfeit his interest in the $186,091 in the Tennessee Valley Federal Credit Union account and the $6,579,517 in the Athens Federal Community Bank account. He may also be subject to a money judgment of not less than $7,400,000 if convicted.
See the United States Attorney's Office for the Eastern District of Tennessee’s Announcement
See also Medical Risk Law, September 2012 Report: Cosmetic Surgery Gone Wrong: High Hopes Meet Unexpected Results