Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4M Medicare

[TexasTowelie]

Former CEO of Tennessee Pain Management Company Convicted for Role in Approximate $4 Million Medicare Kickback Scheme


A federal jury sitting in Nashville, Tennessee found the former CEO of a Tennessee pain management company guilty today for his role in an illegal kickback scheme involving approximately $4 million in tainted durable medical equipment (DME) claims to Medicare.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta region, Special Agent in Charge John F. Khin of the Department of Defense, Defense Criminal Investigative Service's (DCIS) Southeast Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (CI) Charlotte Field Office – Nashville Division and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.

After a seven-day trial, John Davis, 41, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (CPS) of Gallatin, Tennessee, was convicted of all counts including, one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violating the Anti-Kickback Statute. Sentencing has been scheduled for later this year before U.S. District Judge William L. Campbell Jr. of the Middle District of Tennessee, who presided over the trial.

According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare DME orders to his co-conspirator Brenda Montgomery and her company, CCC Medical, located in Camden, Tennessee. Evidence showed that Davis operated a shell company called ProMed Solutions (ProMed), which he had registered in the name of his wife. Despite having no involvement with ProMed and performing no work, Davis’ wife and ProMed received over $770,000 in illegal kickbacks. Together, Davis and Montgomery pocketed over $2.4 million dollars in improper reimbursement from Medicare. Davis used company funds from CPS to pay bonuses to CPS providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis would receive 60 percent of the Medicare profit from those referrals, while the company he ran footed the bill.

Read more: https://www.justice.gov/opa/pr/former-ceo-tennessee-pain-management-company-convicted-role-approximate-4-million-medicare