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Occupational Therapist and Patient Recruiter Plead Guilty in Detroit-Based Medicare Fraud Schemes
Date:11/18/2009

she signed approximately 544 fictitious occupational therapy files, falsely indicating she had provided occupational therapy services to Medicare beneficiaries. Lovelace admitted she knew that the files she helped falsify were used to justify fraudulent billings to Medicare.

In addition, Lovelace admitted that between approximately September 2005 and October 2006, Chand and his co-conspirators submitted claims to the Medicare program totaling approximately $2,176,000 for files that were falsified by Lovelace. Medicare actually paid approximately $1,088,000 on those claims. Lovelace admitted that throughout the conspiracy, she was fully aware that Medicare was being billed for occupational therapy services she had falsely indicated she had performed.

In his plea today, Pierce admitted that he was hired in March 2006 to recruit, drive and pay kickbacks to Medicare beneficiaries to induce them to go to Dearborn Medical Rehabilitation Center (DMRC), a Dearborn, Mich., infusion clinic. The beneficiaries Pierce admitted to recruiting were paid to sign paperwork indicating that they had received infusions and injections of specialty medications that they did not in fact receive.

Pierce admitted that DMRC routinely billed the Medicare program for services that were medically unnecessary or were never provided. The primary owners and operators of DMRC, co-conspirators of Pierce, purchased only a small fraction of the medications that the clinic billed the Medicare program for providing. Patients were prescribed medications at the clinic based not on medical need, but instead based on which medications were likely to generate Medicare reimbursements.

The cases are being prosecuted by Senior Trial Attorney John K. Neal of the Criminal Division's Fraud Section and by Special Assistant U.S. Attorney Thomas W. Beimers of the Eastern District of Michigan. The FBI and the HHS Office of Inspector General (HHS-OIG) conducted the investiga
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SOURCE U.S. Department of Justice
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