PROVIDENCE – A Providence chiropractor has agreed to plead
guilty to charges that he allegedly executed a scheme to defraud health care
benefits programs and that he allegedly failed to pay taxes to the IRS for some
of the income he received from his business, according to documents filed in
federal court in Providence.
It is alleged that Eugene Kramer, 50, sole owner of New
England Spine and Disc Center, devised a scheme to defraud insurance companies
by billing for days patients did not attend treatment, for treatment not
provided, and by falsifying medical notes and documentation to support
nonexistent personal injury claims.
It is alleged in court documents that from January 1, 2018,
to December 31, 2018, Kramer provided invoices for chiropractic treatment to
various attorneys, who then, in order to support a patient’s bodily injury
claim, provided those invoices to various automobile insurance companies in
Rhode Island. At times, Kramer allegedly provided falsified medical notes and documentation.
According to court documents, an individual assisting the
FBI in the investigation of Kramer’s alleged criminal activity, visited
Kramer’s office on 15 occasions for chiropractic treatment, under the pretext
of having been involved in an automobile accident. It is alleged that in most
instances little or no treatment was provided and few if any medical notes were
taken. At no time did Kramer provide the person with a diagnosis or discuss a
treatment plan. Nearly all of the patient’s visits were electronically
monitored by the FBI.
According to court documents, the individual who visited
Kramer’s office in an undercover capacity was allegedly emailed a package
requesting a monetary settlement in connection with the individual’s supposed
injury claim to Progressive Insurance requesting, among other things,
reimbursement for chiropractic services.
According to court documents, it is alleged that for tax
years 2015, 2016, and 2017, Kramer failed to report a portion of his personal
income, resulting in him owing the IRS $66,914.
An information and plea agreement filed in U.S. District
Court charges Kramer with health care fraud and filing a false tax return,
announced United States Attorney Aaron L. Weisman, Special Agent in Charge of
the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of
Internal Revenue Service Criminal Investigation Kristina O'Connell.
An information is merely an accusation. A defendant is
presumed innocent unless and until proven guilty.
Health care fraud is punishable by statutory penalties of up
to 10 years in federal prison, a fine of $250,000, and 3 years’ supervised
release. False tax return is punishable by up to 3 years in prison, a fine of
$100,000, and 1 year supervised release.
The case is being prosecuted by Assistant U.S. Attorney
Dulce Donovan.
The matter was investigated by the FBI and IRS Criminal
Investigation.
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