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Healthcare Executives Sentenced for $200 Million Scam
A group of 14 individuals affiliated with Forest Park Medical Center were sentenced to a combined 74+ years in federal prison for their roles in a $200 million healthcare fraud scheme, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
The defendants, including hospital manager Alan Andrew Beauchamp, were found guilty of various crimes, including conspiracy, paying kickbacks, commercial bribery, and money laundering. The scheme, which took place between 2011 and 2013, involved inducing doctors to refer lucrative patients to the hospital in exchange for kickbacks.
The kickbacks, totaling more than $40 million, were disguised as consulting fees or "marketing money" doled out as a percentage of surgeries each doctor referred to Forest Park. Instead of billing patients for out-of-network co-payments, Forest Park allegedly assured patients they would pay in-network prices.
The scheme was designed to induce doctors to steer lucrative patients, particularly those with high-reimbursing, out-of-network private insurance, to the now-defunct hospital. The hospital manager admitted that Forest Park "bought surgeries," and then "papered it up to make it look good."
The defendants were sentenced as follows:
- Wilton "Mac" Burt, Forest Park’s managing partner, was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the Travel Act, and one count of money laundering. He was sentenced Wednesday to 150 months in federal prison.
- Jackson Jacob, owner of the shell companies through which some of the bribes were routed, was found guilty on four of 14 counts, including conspiracy and three counts of paying kickbacks. He was sentenced Wednesday to 96 months in federal prison.
- Dr. Douglas Won, a spinal surgeon, was found guilty on one of two counts, conspiracy. He was sentenced Thursday to 60 months in federal prison.
- Dr. Michael Rimlawi, a spinal surgeon who partnered with Won, was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks. He was sentenced Thursday to 90 months in federal prison.
- Dr. Shawn Henry, a spinal surgeon who invested in FMPC, was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering. He was sentenced Wednesday to 90 months in federal prison.
- Dr. Mrugeshkumar Shah, a pain management doctor, was found guilty on four of four counts, including conspiracy, two counts of paying kickbacks, and one count of commercial bribery. He was sentenced Thursday to 42 months in federal prison.
- Iris Forrest, a nurse who recruited and preauthorized worker’s comp requests, was convicted on two of two counts, including conspiracy and paying kickbacks. She was sentenced Wednesday to 36 months in federal prison.
The defendants were also ordered to pay a total of $82.9 million in restitution. The scheme, which was uncovered by the Northern District of Texas’ Public Corruption Unit, highlights the need for transparency and accountability in the healthcare industry.
Acting U.S. Attorney Prerak Shah stated, "Patient needs, not physician finances, should dictate where, when, and how patients are treated. Money should never be allowed to influence medical decisions."
The case serves as a reminder that healthcare executives who engage in corrupt practices will face severe consequences.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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