Doctor Found Guilty in $70M Medicare Fraud Scandal

A federal jury convicted a Texas doctor today for causing the submission of over $70 million in fraudulent claims to Medicare for medically unnecessary orthotic braces and genetic tests ordered through a telemarketing scheme.

According to court documents and evidence presented at trial, David M. Young, M.D., 61, of Fredericksburg, signed thousands of medical records and prescriptions for orthotic braces and genetic tests that falsely represented that the braces and tests were medically necessary and that he diagnosed the beneficiaries, had a plan of care for them, and recommended that they receive certain additional treatment. Young prescribed braces and genetic tests for over 13,000 Medicare beneficiaries, including undercover agents posing as different Medicare beneficiaries, many of whom he did not see, speak to, or otherwise treat. Young’s false prescriptions were then used by brace supply companies and laboratories to bill Medicare more than $70 million. Young was paid approximately $475,000 in exchange for signing the fraudulent prescriptions.

The jury convicted Young of one count of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison, and three counts of false statements relating to health care matters, each of which carries a maximum penalty of five years in prison. He is scheduled to be sentenced at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Region; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

HHS-OIG and MFCU investigated the case.

Assistant Chief Brynn Schiess and Trial Attorney Ethan Womble of the Texas Strike Force of the Criminal Division’s Fraud Section are prosecuting the case.

Public Release. More on this here.