Dr. Sonjay J. Fonn, Kickback Scandal, Missouri 2008

Feds Indict Cape Girardeau Neurosurgeon in Kickback Scandal

A federal grand jury in Cape Girardeau, MO, has indicted Dr. Sonjay J. Fonn, a neurosurgeon, and Deborah Seeger, the owner of a medical device supplier, on federal anti-kickback charges. The indictment alleges that Dr. Fonn and Ms. Seeger conspired to solicit and receive commissions from medical device manufacturers.

The indictment states that Dr. Fonn and Ms. Seeger jointly operated DS Medical LLC, a company that served as the distributor of medical devices and supplies to Dr. Fonn’s neurosurgery practice, Midwest Neurosurgeons LLC. The company allegedly demanded and received exorbitant commissions from medical device manufacturers for medical devices and supplies purchased by the hospital where Dr. Fonn performed spinal fusion surgeries.

According to the indictment, once DS Medical started operating, Dr. Fonn altered the way he practiced medicine, generally using more spinal implants in each of his surgeries while performing more surgeries than he typically performed before or after DS Medical was operating. In December 2008, the first full month of operation for DS Medical, Dr. Fonn ordered approximately $1,330,090 worth of spinal implants for his surgeries, more than twice as much as his nearest medical peer in the local health care market.

The commissions paid to DS Medical and Ms. Seeger by the manufacturers were allegedly used to purchase a house where Dr. Fonn and Seeger resided, a boat, an airplane, and various home improvements, which they shared.

The indictment charges Dr. Fonn and Deborah Seeger with one felony count of conspiracy to solicit and receive illegal kickbacks and three felony counts of anti-kickback violations. If convicted, each of the charges against Dr. Fonn and Deborah Seeger carry a maximum penalty of five years in prison and/or fines up to $250,000.

The case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services-Office of the Inspector General. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

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