July 13, 2024

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Michigan doc charged in $120 million healthcare fraud, money laundering scheme

A doctor who the top prescriber of oxycodone in Michigan from 2016 to 2017 was charged in an indictment this 7 days with a $one hundred twenty million health care fraud and revenue laundering plan that included the alleged medically avoidable distribution of extra than two.two million doses of controlled substances, and the administration of medically avoidable injections. These purportedly resulted in affected individual harm.

Francisco Patino, sixty five, of Wayne County, Michigan, was charged in the superseding indictment with 1 count of conspiracy to dedicate health care fraud and wire fraud, 1 count of conspiracy to dedicate revenue laundering and 1 count of revenue laundering.

These expenses are in addition to the two counts of health care fraud and 1 count of conspiracy to defraud the United States, and pay out and acquire health care kickbacks, that was charged in the preliminary indictment. A demo has been scheduled to start out on April 7.

What is THE Impact

The indictment alleges the laundering of the proceeds of the health care fraud plan to falsely portray Patino as a legit physician via the publication of a food plan guide and prepare described as the “up coming Atkins,” compensated-for appearances on a nationally syndicated television demonstrate, and the sponsorship of boxers, cage fighters and well known Top Preventing Championship planet champions and corridor-of-famers.

Patino owned, controlled and operated various agony clinics and laboratories in Michigan — like International Good quality Inc., RenAMI, FDRS and Patino Laboratories — and from 2008 until eventually his arrest in 2018, he allegedly induced sufferers to appear to his clinics by featuring avoidable prescriptions for addictive opioids, of which he ultimately recommended around two.two million doses, like fentanyl, oxycodone and oxymorphone.

Patino recommended these opioids to Medicare beneficiaries, some of whom have been addicted to narcotics. Some of these opioids have been allegedly resold on the road. Fentanyl is 1 of the most potent opioids readily available for human use.

Patino is charged with forcing sufferers to submit to avoidable and at times agonizing back injections and other methods in exchange for the opioid prescriptions as aspect of the plan. He also allegedly persisted with these illegal procedures even following Medicare informed him that the injections violated Medicare’s rules, and following he entered into a consent order with the State of Michigan that his prescription of opioids “represent[d] a violation of the general public well being code.”

He also is accused of purchasing avoidable urine drug screening in exchange for illegal kickbacks.  Patino was evidently conscious that his possession construction and kickbacks have been a violation of regulation and authored emails acknowledging that these kinds of possession constituted  a “violation of the Stark and Anti-Kickback regulations,” and tried to conceal and disguise the possession construction and plan in order to preserve himself “out of Federal Prison and getting all our assets seized to pay out a fifteen million dollar fine.”

Patino is also accused of conspiring to dedicate revenue laundering  in relationship with the development and marketing of the “Patino Diet regime” prepare, which Patino described to others as the “up coming Atkins food plan.” In order to conceal and disguise his illegal plot, Patino allegedly compensated for the authorship and publication of a guide touting the food plan prepare, entitled “The Age of Globesity,” and compensated hundreds of thousands of bucks in order to market the food plan prepare and look as the special medical expert on a nationally syndicated television demonstrate.


In addition to concealing the plan by shelling out revenue to falsely portray himself as a media temperament and a legit doctor, the superseding indictment alleges that Patino laundered revenue by entering into sham contracts or work associations to pay out others on his behalf to sponsor boxers, combined martial artists and Top Preventing Championship combatants, like UFC planet champions and corridor-of-famers. He also allegedly withdrew the proceeds derived from the conspiracy to live an extravagant life style and devote revenue on luxury dresses, true estate and international vacation, like various journeys to the Cayman Islands.

The expenses in opposition to Patino are relevant to a broader investigation into the Tri-County Network of agony clinics in Michigan and Ohio, which requires around $300 million in alleged Medicare fraud and distribution of extra than 6.6 million doses of controlled substances. In relationship with the investigation, 22 defendants, like 12 medical professionals, have formerly pleaded guilty or been found guilty at demo.

An indictment is basically an allegation and all defendants are presumed harmless until eventually demonstrated guilty.

THE Larger Pattern

Of the extra than $3 billion in fraud settlements and judgments the governing administration recovered from civil scenarios involving fraud and fake claims in the former fiscal 12 months, $two.6 billion included health care, in accordance to the Office of Justice.

The scenarios include things like drug and medical product suppliers, managed care providers, hospitals, pharmacies, hospice corporations, laboratories, and medical professionals.

The amounts incorporated in the $two.6 billion mirror only federal losses, but in several of these scenarios the section was instrumental in recovering added thousands and thousands of bucks for state Medicaid applications.

Of the $3 billion in settlements reported for the fiscal 12 months ending September thirty, extra than $two.1 billion arose from lawsuits filed by whistleblowers below the qui tam provisions of the Wrong Claims Act. The governing administration compensated out $265 million to the people who uncovered fraud and fake claims by submitting these actions.

Twitter: @JELagasse

Email the writer: [email protected]