July 24, 2024


Imagination at work

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

A medical doctor who the leading prescriber of oxycodone in Michigan from 2016 to 2017 was billed in an indictment this 7 days with a $one hundred twenty million healthcare fraud and income laundering scheme that included the alleged medically needless distribution of far more than two.two million doses of managed substances, and the administration of medically needless injections. These purportedly resulted in client hurt.

Francisco Patino, sixty five, of Wayne County, Michigan, was billed in the superseding indictment with one particular rely of conspiracy to dedicate healthcare fraud and wire fraud, one particular rely of conspiracy to dedicate income laundering and one particular rely of income laundering.

These fees are in addition to the two counts of healthcare fraud and one particular rely of conspiracy to defraud the United States, and fork out and obtain healthcare kickbacks, that was billed in the original indictment. A trial has been scheduled to start out on April seven.

What’s THE Effects

The indictment alleges the laundering of the proceeds of the healthcare fraud scheme to falsely portray Patino as a respectable doctor by means of the publication of a diet regime e book and prepare explained as the “subsequent Atkins,” paid out-for appearances on a nationally syndicated tv clearly show, and the sponsorship of boxers, cage fighters and popular Top Combating Championship planet champions and corridor-of-famers.

Patino owned, managed and operated numerous soreness clinics and laboratories in Michigan — such as International Good quality Inc., RenAMI, FDRS and Patino Laboratories — and from 2008 right up until his arrest in 2018, he allegedly induced people to occur to his clinics by featuring needless prescriptions for addictive opioids, of which he in the end approved in excess of two.two million doses, such as fentanyl, oxycodone and oxymorphone.

Patino approved these opioids to Medicare beneficiaries, some of whom ended up addicted to narcotics. Some of these opioids ended up allegedly resold on the road. Fentanyl is one particular of the most potent opioids out there for human use.

Patino is billed with forcing people to submit to needless and from time to time distressing back injections and other techniques in exchange for the opioid prescriptions as portion of the scheme. He also allegedly persisted with these unlawful techniques even soon after Medicare knowledgeable him that the injections violated Medicare’s policies, and soon after he entered into a consent order with the Condition of Michigan that his prescription of opioids “constitute[d] a violation of the general public wellness code.”

He also is accused of purchasing needless urine drug testing in exchange for illegal kickbacks.  Patino was apparently mindful that his possession construction and kickbacks ended up a violation of legislation and authored email messages acknowledging that these kinds of possession constituted  a “violation of the Stark and Anti-Kickback laws,” and attempted to conceal and disguise the possession construction and scheme in order to preserve himself “out of Federal Jail and acquiring all our assets seized to fork out a fifteen million greenback great.”

Patino is also accused of conspiring to dedicate income laundering  in connection with the creation and marketing of the “Patino Diet regime” prepare, which Patino explained to other folks as the “subsequent Atkins diet regime.” In order to conceal and disguise his illegal plot, Patino allegedly paid out for the authorship and publication of a e book touting the diet regime prepare, entitled “The Age of Globesity,” and paid out hundreds of hundreds of bucks in order to boost the diet regime prepare and seem as the special health-related skilled on a nationally syndicated tv clearly show.


In addition to concealing the scheme by spending income to falsely portray himself as a media personality and a respectable medical doctor, the superseding indictment alleges that Patino laundered income by entering into sham contracts or employment relationships to fork out other folks on his behalf to sponsor boxers, combined martial artists and Top Combating Championship combatants, such as UFC planet champions and corridor-of-famers. He also allegedly withdrew the proceeds derived from the conspiracy to live an extravagant lifestyle and invest income on luxurious clothing, authentic estate and international journey, such as many visits to the Cayman Islands.

The fees in opposition to Patino are relevant to a broader investigation into the Tri-County Network of soreness clinics in Michigan and Ohio, which involves in excess of $three hundred million in alleged Medicare fraud and distribution of far more than 6.6 million doses of managed substances. In connection with the investigation, 22 defendants, such as 12 medical professionals, have formerly pleaded guilty or been discovered guilty at trial.

An indictment is simply an allegation and all defendants are presumed innocent right up until demonstrated guilty.

THE Bigger Trend

Of the far more than $three billion in fraud settlements and judgments the govt recovered from civil instances involving fraud and wrong promises in the past fiscal year, $two.6 billion included healthcare, in accordance to the Department of Justice.

The instances involve drug and health-related unit manufacturers, managed treatment companies, hospitals, pharmacies, hospice businesses, laboratories, and medical professionals.

The quantities bundled in the $two.6 billion reflect only federal losses, but in several of these instances the office was instrumental in recovering supplemental hundreds of thousands of bucks for point out Medicaid programs.

Of the $three billion in settlements reported for the fiscal year ending September 30, far more than $two.one billion arose from lawsuits submitted by whistleblowers under the qui tam provisions of the Wrong Statements Act. The govt paid out out $265 million to the people today who uncovered fraud and wrong promises by submitting these steps.

Twitter: @JELagasse

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