A Providence-based chiropractor has pleaded guilty to allegations that he carried out a fraud scheme to swindle health care benefits programs and for allegedly failing to pay taxes to the IRS for some of the income his business earned, according to court documents filed in federal court in Providence.
It is alleged that Eugene Kramer, age 50, the operator of New England Spine and Disc Center, came up with a plot to swindle insurance companies by invoicing for days that patients did not receive treatment, for treatment not offered, by altering medical notes and documentation to support personal injury claims that were nonexistent.
According to court documents, it is alleged that, from 1st January 2018 to 31st, December 2018, Kramer submitted invoices for chiropractic treatment to several attorneys, who then, in order to back up a patients bodily injury claim, submitted those invoices to several car insurance companies in Rhode Island. Certain times, Kramer allegedly gave medical notes and documentation that were falsified.
According to court documentation, an individual aiding the FBI in the inquiry of Kramer’s supposed criminal activity, paid Kramer’s office a visit 15 times for chiropractic treatment, under the false pretense of having been involved in a car accident. It is alleged that in most cases, little or no treatment was offered and few if any medical notes were jotted down. At no instance did Kramer provide a diagnosis or discuss the treatment plan with the patient. Close to all his patients’ visits were monitored electronically by the FBI.
According to court documents, the patient who visited Kramer’s office in a spy capacity was allegedly emailed a package soliciting monetary compensation in relation to the patient’s alleged injury claim to Progressive Insurance soliciting, among other things, compensation for chiropractic services.
According to court documentation, it is alleged that, for 2015, 2016, and 2017 tax years, Kramer failed to declare part of his personal income, leading to him owing the IRS $66,914.
An information and plea petition filed in the United States District Court accuses Kramer of health care fraud and filing of tax returns that are false, announced Aaron L. Weisman, United States Attorney, Joseph R. Bonavolonta, Special Agent in Charge of FBI Boston Division, and Kristina O’Connell, Special Agent in Charge of Internal Revenue Service Criminal Investigation.
An allegation is merely an accusation. The accused is assumed to be innocent until proven guilty beyond a reasonable doubt.
By statutory penalties, health care fraud is punishable by law, of up to 10 years in federal prison, $250,000 fine, and 3 years of supervised release. Filing for false tax is punishable by the law of up to 3 years in federal prison, $100,000 fine, and 1 year supervised release.
Prosecuting the case is Dulce Donovan, Assistant U.S. Attorney.
The FBI and IRS Criminal Investigation investigated the matter.
Do you know any such Medicare fraud? Do you know some healthcare professionals or companies involved in similar kinds of scams? Then you can file a complaint under the False Claims act. Remember, in such cases; you need to act fast and file the complaint before anyone else. Healthcare Fraud Group is a team of seasoned defense lawyers who specialize in cases involving health fraud. We have the requisite experience to determine and formulate the best way to deal with a legal issue. Don’t feel hesitant to reach us at 888-402-4054 for any kind of medical fraud or related offenses.
