Seventeen Texas doctors and executives — including physicians from Corinth and Lewisville — were charged Thursday for their involvement in a $1.2 billion health care kickback and money-laundering conspiracy.
The 17 Texans, who face charges from the U.S. Attorney’s Office for the Eastern District of Texas, are among 36 total defendants across the country.
The laboratories True Health Diagnostics LLC and Boston Heart Diagnostics Corp. allegedly conspired with small Texas hospitals to pay physicians to induce referrals to the hospitals for laboratory testing. The physicians received thousands of dollars in kickbacks in return for their referrals of laboratory testing, according to a press release. The complaint alleges their claims improperly billed federal health care programs for medically unnecessary laboratory testing.
North Texas defendants in U.S. v. Hertzberg, et al., include:
- Elizabeth Ruth Seymour, 39, of Corinth
- Hong Davis, 54, of Lewisville
- Laura Spain Howard, 48, of Allen
- Linh Ba Nguyen, 58, of Dallas
- Thuy Ngoc Nguyen, 54, of Dallas
- Christopher Roland Gonzales, 45, of McKinney
- Joseph Gil Bolin, 50, of Dallas
- Heriberto Salinas, 62, of Cleburne
- Jordan Joseph Perkins, 38, of Conroe
- Ruben Daniel Marioni, 37, of Spring
- William Todd Hickman, 59, of Lumberton
- Jeffrey Paul Madison, 47, Georgetown
- Thomas Gray Hardaway, 49 of San Antonio
- Jeffrey Paul Parnell, 54, of Tyler
They were among those indicted on charges of conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute. It prohibits offering, paying, soliciting or receiving remuneration to generate referrals of items or services covered by federal health care programs.
Physicians were allegedly incentivized to refer patients to critical-access hospitals and an affiliated lab in exchange for kickbacks disguised as investment returns. Marketers were incentivized to order, arrange for or recommend patients to order services from these hospitals and an affiliated lab.
Between July 1, 2015, and Jan. 9, 2018, these defendants exchanged at least $11.25 million in illegal kickback payments.
Howard pleaded guilty to her involvement on May 24. Marioni pleaded guilty on July 20.
Other criminal cases
Petter Bennett, 47, of Houston and Stephen Kash, 48, of Winnie were indicted on charges of conspiracy to commit money laundering. Bennett allegedly created sham trusts and shell corporations to launder the kickback proceeds through. Bennet is accused of laundering at least $2.7 million in kickback proceeds. Kash allegedly had kickback proceeds laundered on his behalf and obtained proceeds from the kickback conspiracy.
Robert O’Neal, 63, of San Antonio was charged by information with conspiracy to commit illegal remunerations and money laundering. He allegedly arranged for physician referrals and recommended ordering services to critical-access hospitals and an affiliated lab. O’Neal allegedly had kickback proceeds laundered on his behalf and obtained proceeds from the kickback conspiracy.
O’Neal pleaded guilty to his involvement in the kickback and money-laundering conspiracies on Jan. 18.
Civil cases and settlements
Thirty-three doctors, health care executives and the Boston Heart Diagnostics Corp. have agreed to pay more than $32 million to resolve False Claims Act allegations of their involvement in the scheme.
Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan L. Hertzberg and former Little River CEO Jeffrey Paul Madison are among the defendants. These settlements resolve allegations that doctors and health care executives violated the Anti-Kickback Statute by receiving thousands of dollars in remunerations from management service organizations. These companies were allegedly used to disguise the payments as investment returns.
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