Related Federal Cases
Doctor’s $29M Clinic for Addicts Exposed
Columbus, Ohio – Kevin B. Lake, 50, pleaded guilty to running a South Side medical center as a drug premises and evading more than $3.5 million in taxes.
Lake, who owned and operated Columbus Southern Medical Center in Columbus, Ohio, admitted to engaging in a series of schemes to evade taxes on his personal income tax returns and corporate tax returns, causing a tax loss of more than $3.5 million.
The clinic, located at 2912 South High Street, was a hotbed of activity, with hundreds of patients showing up daily to receive prescriptions of oxycodone, hydrocodone and Xanax. Nearly 85 percent of patients were returning visitors, and the percentage of patients prescribed controlled substances rose each year, jumping from nearly 60 percent in 2004 to nearly 92 percent in 2009 and 2010.
Lake’s scheme also involved money laundering, with over $20 million in transactions using illegal drug proceeds. He also admitted to filing fraudulent tax returns and taking inflated charitable contribution deductions on his individual income tax returns.
After the Drug Enforcement Administration (DEA) first appeared at the clinic in June 2010, Lake took steps to separate himself from the clinic, including filing a fraudulent claim for disability payments and selling the clinic’s remaining stock to employees.
Lake’s crimes also involved defrauding the Bureau of Workers’ Compensation by having employees upcode office visits, causing a loss of more than $260,000. As part of the plea agreement, Lake agreed to forfeit the remaining funds from the $29 million seized from the clinic’s activities.
The plea deal also includes restitution to be paid from the seized funds. Lake’s sentencing is scheduled for a later date. The case was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio.
Key Facts
- State: Federal
- Category: Drug Trafficking|Fraud & Financial Crimes|Violent Crime|Sex Crimes|Cybercrime|Public Corruption|Weapons|Human Trafficking|White Collar Crime|Organized Crime
- Source: DOJ Press Release â†â€â€
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