KANSAS CITY, MO – David L. Biersmith, 80, of Kansas City, Missouri, has confessed to a brazen scheme to defraud the Department of Veterans Affairs and falsify medical certifications for commercial truck drivers. Biersmith, the owner and president of Industrial Medical Center (IMC) in Independence, Missouri, pleaded guilty in federal court today to one count of health care fraud and one count of making false statements to a federal agency.
The operation, revealed through a Department of Veterans Affairs Office of Inspector General hotline report in April 2014, involved conducting disability examinations for veterans under a contract with Logistics Health, Inc. While the contract stipulated that only credentialed physicians could perform these evaluations, Biersmith allegedly directed Wayne W. Williamson, 74, of Kansas City, and another unnamed individual to carry out the examinations despite their lack of proper authorization. Biersmith himself held no medical license or credentials.
This wasn’t a one-off lapse in oversight. Williamson, a formerly licensed physician who surrendered his credentials in 2010 after pleading guilty to another healthcare fraud, conspiracy to distribute Oxycotin, Percocet, and Xanax, and harassment of a state investigator, was already a convicted felon. He received a three-year federal prison sentence and was permanently barred from Medicare and Medicaid programs. Yet, IMC continued to submit invoices for 209 disability examinations on 53 veterans, racking up $39,155 from the Department of Veterans Affairs via Logistics Health. The examinations were falsely certified as being completed by a licensed physician.
The fraud extended beyond veterans. Biersmith also admitted to making false statements regarding medical examinations of commercial truck drivers – a critical safety concern. These examinations, required by federal regulations, were similarly compromised, raising serious questions about the validity of certifications and the potential for unqualified drivers on the road. The details of this aspect of the scheme remain largely undisclosed at this time.
The fallout from the scam was significant. The Department of Veterans Affairs was forced to re-adjudicate all claims associated with the fraudulent examinations, subjecting veterans to repeat screenings and reviews. Some were required to undergo new physical exams, adding to the bureaucratic burden and potential hardship. The agency wasted resources chasing down a deliberate and calculated fraud.
While Biersmith has waived his right to a grand jury, sentencing has not yet been scheduled. Williamson previously pleaded guilty to health care fraud on January 17, 2017, further cementing a pattern of disregard for the law and exploitation of vulnerable populations. Acting United States Attorney Tom Larson for the Western District of Missouri has vowed to continue prosecuting those who attempt to defraud the government and endanger public safety.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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