FARGO – In a brazen scheme, Seattle physician John C. Chen bilked Medicare out of $150,000 by submitting false claims for patient services that never took place. Chen, 50, pleaded guilty to one misdemeanor count of unlawful possession of an identification feature on June 30, 2014.
According to court documents, Chen submitted claims for office visits that did not occur because he was physically outside the United States at the time. The claims, which originated from the Seattle area, were made through Noridian Administrative Services, now known as Noridian Healthcare Solutions, LLC, a North Dakota-based Medicare Administrative Contractor.
As part of its responsibilities to Medicare, Noridian Healthcare Solutions, LLC processes and pays Medicare claims arising from durable equipment suppliers throughout the State of Washington. Chen’s scheme went undetected for years, with the physician submitting false claims between 2007 and 2010.
U.S. Attorney Timothy Q. Purdon announced Chen’s sentence, which includes one year of probation and a restitution order of $56,642.52 to the Centers for Medicare and Medicaid Services. Chen also paid a $25 special assessment to the Crime Victims Fund.
Chen’s settlement with the government totaled $150,000, which he paid as part of a parallel civil proceeding in the Western District of Washington alleging violations under the False Claims Act.
The case was investigated by the Department of Health and Human Services, Office of Inspector General, Office of Investigations. The case was prosecuted by Special Assistant U.S. Attorney Matthew Greenley.
Chen’s sentence serves as a reminder of the consequences of Medicare fraud, a serious crime that can have devastating effects on the healthcare system and the vulnerable individuals who rely on it.
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Key Facts
- State: North Dakota
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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