A federal jury has found Dr. Stephen M. Lovell, a 55-year-old chiropractor from Windermere, guilty of conspiracy to commit health care fraud. Lovell faces a maximum penalty of 20 years in federal prison.
According to testimony presented at trial, Xtreme Care Rehabilitation Center Inc. (“Xtreme Care”) was operating in Cape Coral as an unlicensed health care clinic since 2009. The State of Florida licensing requirements were circumvented by the conspirators as a result of the purported exclusive ownership of these clinics by licensed health care practitioners, including licensed chiropractor Dr. Stephen M. Lovell.
As a result of the purported ownership of the clinics by a licensed health care practitioner, these clinics avoided greater regulatory scrutiny. In actuality, other conspirators including Francisco Huici Fernandez and Ernesto Diaz were the true owners of the clinics.
In furtherance of the health care fraud, the conspirators recruited individuals who purported to be involved in staged accidents and received injuries. These recruited individuals would go to Xtreme Care in exchange for payment. Xtreme Care then billed insurance companies by submitting false claims, through the mail, for purportedly medically necessary treatments that these patients received.
However, as the indictment alleged, treatment was either never provided to these patients or was not medically necessary. Upon payment by the insurance company, the proceeds of the fraudulent activity were then transferred to corporations created by the conspirators to launder the proceeds of the criminal activity. Ultimately, the conspirators received the benefits of the fraudulent activity through payments or expenditures for themselves from the corporate bank accounts.
Dr. Stephen M. Lovell was indicted in February 2012, along with his co-conspirators Joanna Capote, Francisco Huici Fernandez, Ernesto Diaz, Karen Carmona Jackson, Jeanine Lastres Huici, Marylda Santana, Sonia Arroyo, and Indra Lemus Castellanos. Each of the co-conspirators previously pleaded guilty for their roles in this case.
Dr. Stephen M. Lovell’s sentencing hearing is scheduled for June 10, 2013.
Related Federal Cases
- Christopher Gregory Wayne, Health Care Fraud, Conspiracy to Violate Narcotics Laws, Florida 2014 · Florida
- Darrell A. Hall, Conspiracy to Distribute a Controlled Substance, Health Care Fraud, Tax Evasion, Ohio 2009 · Florida
- Robert Anton Woodring, Mail Fraud and Conspiracy to Commit Mail Fraud, Florida 2015 · Florida
- Michael Szafranski, Conspiracy to Commit Wire Fraud, Florida 2009 · Florida
- Francisco Enrique Chavez, Health Care Fraud, Florida 2013 · Florida
Key Facts
- State: Florida
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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