Case File #2 Owners of an athletic club and rehab facility, along with a co-defendant chiropractor, were convicted of health care fraud and mail fraud

The owners and operators of an athletic club and rehabilitation office, along with a chiropractor employee, fraudulently billed Independence Blue Cross (IBC) for chiropractic treatments that were not performed and would not have been medically necessary even if they had been performed.

In total, the three defendants caused the submission of fraudulent medical bills to IBC totaling approximately $1.9 million. This resulted in payments from IBC totaling approximately $399,822.

All three defendants pled guilty to federal charges. One owner was sentenced to 12 months and 1 day in federal prison; 3 years supervised probation; and a fine of $5,000. The other owner was sentenced to 6 months in federal prison and a fine and special assessment of $10,000. Both owners were ordered to pay restitution of $399,882 to IBC. The chiropractor was sentenced to 3 years of probation including 150 hours of community service for each year of probation. At the end of the period of probation, he was required to pay IBC part of the $399,822 restitution.