Chiropractor Sentenced to 20 Months in Prison for Health Care Fraud in Chicago
CHICAGO — A chiropractor who owned several clinics in the north suburbs of Chicago has been sentenced to 20 months in federal prison for billing an insurance carrier for medically unnecessary or nonexistent services.
Steven Paul, 46, of Northbrook, previously pleaded guilty to one count of health care fraud. According to the investigation, Paul required the clinics’ chiropractors and medical doctors to order x-rays, MRI scans and neurological diagnostic testing, without regard to medical necessity.
Paul billed Blue Cross Blue Shield of Illinois for the unnecessary services, and he also billed the carrier for physical therapy services that were never provided. Paul and his co-defendant, chiropractor Bradley Mattson, jointly owned six chiropractic clinics in the north suburbs of Chicago.
The government is alleging that Paul and Mattson required patients to receive an initial x-ray and a pre-set schedule of clinic visits for a period of six months, without regard to the medical necessity of the visits. Paul admitted that from 1999 to 2008, he directed billings to Blue Cross Blue Shield totaling $3.65 million for medically unnecessary tests or physical therapy services that were not provided, and his clinics collected $1.33 million in fraudulent reimbursements from the insurance company.
During the investigation, an undercover FBI agent visited the Hawthorn clinic for treatment of a purported back strain. Mattson diagnosed the agent with a pinched nerve and ordered a pre-set treatment plan that began with daily visits for two weeks. Mattson rendered his diagnosis despite the opinion of the clinic’s medical doctor and a physical therapist that the agent did not have a pinched nerve but rather a pulled muscle.
U.S. District Judge Ronald A. Guzman on Tuesday imposed the prison sentence in federal court in Chicago. Judge Guzman cited Paul’s “extraordinary cooperation” in the government’s investigation as a basis for imposing what the Judge said was the lowest possible term of imprisonment he would consider for Paul’s fraud scheme.
The case was prosecuted by Assistant U.S. Attorney Renai S. Rodney. The FBI and the U.S. Department of Labor, Office of Inspector General, investigated the case.
Mandatory Facts:
Defendant: Steven Paul
Criminal Charges: Health Care Fraud
City and State: Chicago, Illinois
Date: 2024
Sentence: 20 months in prison
Dollar Amounts: $3.65 million, $1.33 million
Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News