State v. Mr. B (DMC No. 16073) – Federal Felony Insurance Fraud ($127,000) “Stark” Violation Per 42 USC 1395, Felony Fraudulent Schemes (Illegal Referral Fees Per ARS 13-3713), and Felony Theft – Not Charged (Related to High-Profile $1.3 Billion Dollar Multistate Healthcare Fraud Investigation) – Federal DEA Fraud Task Force and Yavapai County Insurance Detectives Investigated
Mr. B was a 75% owner of a Drug and Alcohol rehab facility in Prescott, Arizona. Many drug rehabilitation facilities are located in Yavapai County, and many were Investigated by insurance companies for “Stark” kickback violations per Federal Waw. In addition, many were Investigated for providing Referral Fees above $1000 for potential rehab clients. During a particular time period, there were many articles coming out in the press that the then United States Attorney was conducting a Fraud Task Force and was investigating many rehab facilities in multiple states. In the news, Prescott was mentioned. At some point, an Insurance Investigator from Yavapai contacted Mr. B. At that point in time, he secured the services of DM Cantor.
We were able to immediately invoke our Client’s Right to Remain Silent, and asked that all contact go through our office. Next, we argued that without specific witnesses or other information to show that Stark kickback violations were occurring, the Government would have no way of proving Mr. B was involved in any illegal activity. Lastly, we were able to show that he had an impeccable track record of helping people who were addicted to substances, and he helped them move on with productive drug-free lives. Ultimately, both the Unites States Attorney and the Yavapai County Attorneys made the decision to Not Charge Mr. B. Had he have been Charged and Convicted of all crimes they were alleging, he could have spent many Years in Prison. Instead, he has No Criminal History.
