The medical doctor admitted that he wrote and sold numerous prescriptions for oxycodone and other controlled substances with the knowledge that the prescriptions were not for a legitimate medical purpose and were beyond the bounds of medical practice.
He was responsible for the distribution of at least 11,000 oxycodone 30 mg pills.
Beginning in February 2013 and continuing until around August of 2014, the doctor and others conspired to distribute oxycodone throughout northern Virginia. He wrote and sold prescriptions for oxycodone and other controlled substances knowing full well that the individuals in whose names the prescriptions were written were abusing and selling the drugs.
The doctor never met many of the people for whom he wrote oxycodone prescriptions. They were not his medical patients.
Fraudulent patient histories
Over the course of the conspiracy, one of the doctor’s co-conspirators paid him approximately $500 to $1,000 per fraudulent oxycodone prescription. The doctor also directed a co-conspirator to create fraudulent patient history forms and medical records to make it appear that these individuals were actually legitimate patients.
The doctor’s medical license was previously suspended in 2008 for 90 days, and he was placed on probation by the Virginia Board of Medicine at the conclusion of this temporary suspension. His license to practice medicine was suspended again by the Virginia Board of Medicine on July 11, 2014.
He then signed a consent order with the Virginia Board of Medicine and voluntarily and permanently surrendered his license to practice medicine and perform surgery in Virginia. The consent order states he will not be eligible for reinstatement of his license at any future date.
Derron McRae Simon, 45, of Arlington, Virginia, was sentenced to 180 months in prison, followed by six years of supervised release for his role in the oxycodone conspiracy.
Equipment Dealer Guilty in Medicare Fraud
A Los Angeles jury has convicted the former owner of a durable medical equipment supply company of health care fraud charges in connection with a $3.5 million Medicare and Medi-Cal fraud scheme.
Sylvia Walter-Eze, 48, of Stevenson Ranch, California, was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, and one count of conspiracy to pay and receive illegal kickbacks. Sentencing is scheduled for June 2015.
The evidence at trial showed that Walter-Eze, the then-owner of Ezcor Medical Supply, paid illegal kickbacks to patient recruiters in exchange for patient referrals. The evidence further showed that Walter-Eze paid kickbacks to physicians for fraudulent prescriptions, primarily for medically unnecessary, but expensive, power wheelchairs, that she then used to support her fraudulent bills to Medicare and Medi-Cal.
Between 2007 and 2012, Walter-Eze submitted $3,521,786 in claims to Medicare and Medi-Cal, and received $1,939,529 in reimbursement for those claims.