John Montgomery, 58, of Exton, PA, and Alfredo Lopez, M.D., 47, of Indianapolis, Indiana, are staring down federal prison time after being indicted on charges of Conspiracy to Commit Health Care Fraud and Conspiracy to Solicit and Pay Kickbacks. The scheme, which ran from January 2006 to January 2013, raked in at least $4.1 million in fraudulent Medicare claims for nerve conduction tests that failed to meet federal coverage rules or medical standards.
As laid out in the indictment, Montgomery and Lopez set up operations offering nerve conduction testing inside primary care, chiropractic, and podiatry offices across the country. But the services came with a corrupt twist: the duo dangled financial incentives to providers, pressuring them to order unnecessary tests. Those tests were performed by the defendants—and billed to Medicare, no questions asked.
The Justice Department alleges the pair systematically exploited the Medicare system, submitting claims for procedures that never should have qualified for reimbursement. Over seven years, the fraud caused Medicare to lose at least $679,214 in direct payouts. Investigators say the tests were often medically unjustified, bypassing established protocols to line their own pockets.
If convicted, Montgomery and Lopez each face a maximum of 15 years behind bars, followed by three years of supervised release. They could also be fined up to $500,000 and slapped with a $200 special assessment. The charges underscore the federal crackdown on medical professionals and contractors who weaponize billing systems for profit.
The case was investigated by the Department of Health and Human Services – Office of Inspector General, a frequent player in rooting out systemic Medicare abuse. Prosecution is being handled by Assistant United States Attorneys M. Beth Leahy and Jennifer B. Jordan, who are building a case rooted in billing records, contracts, and provider testimony.
An indictment is not a conviction. John Montgomery and Alfredo Lopez are presumed innocent until proven guilty in a court of law. But the evidence, as the government presents it, paints a picture of a long-running, calculated fraud that preyed on one of America’s most vital health programs.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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