Pennsylvania Chiropractor Sentenced To 4 Years For Healthcare Fraud

Douglas A. Henderson, 47, of Lower Burrell, Pennsylvania, was sentenced Friday to 4 years in prison and ordered to pay $12.1 million in restitution to Highmark Blue Cross/Blue Shield for fraudulent billings for services never performed. The sentencing had been delayed 10 times. In April 2006, Henderson pleaded guilty to separate felony counts of health care fraud, conspiracy and income tax evasion. According to prosecutors, between January 1995 through 2002, Henderson billed Highmark for services never performed on patients of the now-defunct Burrell Chiropractic Clinic. Fifteen other individuals have been charged in this case. Henderson's fraud allowed him to live lavishly with several homes, a fleet of luxury vehicles and a country club membership, among other things. He did cooperate in the prosecution of the other 15 individuals, who have all been convicted or plead guilty. Henderson, who masterminded the largest health care fraud in Western Pennsylvania history, is quoted as saying, "My actions are inexcusable." I agree.

The Pittsburgh Tribune Review has an excellent article chronicling the case here which includes this list of the other 15 defendants in the case:

• Robert Bates, 56, of Lower Burrell was sentenced to serve three years' probation, including 10 months of home detention. He cooperated with Henderson to submit more than $152,600 in false claims, for which he was paid $19,500.
• Brandon E. Burns, 31, of Murrysville was placed on probation for three years and ordered to pay restitution of $64,000 for false claims submitted in his name. He received about $17,000 for his participation.
• Robert Durcho, 51, Tarentum was sentenced to three years' probation and ordered to make restitution for 147,000 in false claims. He was paid about $51,000 in the scam.
• Marilyn Marshall, 56, Murrysville was placed on probation for three years and ordered to make $140,000 in restitution. She received around $58,000 from Henderson for her cooperation.
• Tina McCurdy, 42, of North Huntingdon was sentenced to three years' probation and ordered to pay $242,000 in restitution for her role in the scheme that paid her $73,992 in kickbacks.
• Eric Ribar, 37, of Apollo must serve three years' probation and pay $146,577 in restitution for claims submitted in his name. He received $49,230, prosecutors said.
• John Slimick, 49, of New Eagle in Washington County was placed on probation for three years and ordered to serve six months on house arrest. He must pay $156,000 in restitution for claims filed by Henderson, who paid him about $20,000.
• Phillip Swartzlander, 50, of New Kensington was sentenced to five months in prison followed by probation. He must make restitution totaling $138,000 for cooperating with Henderson, who paid him $30,000.
• Judith Williamson, 50, of Pittsburgh's South Side was placed on probation for three years and ordered to repay Highmark $316,611 for claims submitted in her name by Henderson, who paid her $46,500.
• Heather Layhew, 35, of Rural Valley in Armstrong County, and John Layhew, 40, of Lower Burrell will be sentenced Jan. 9. They admitted helping Henderson to obtain $210,000, for which they received $47,000.
• Linda McClafferty, 59, and William McClafferty, 54, of Allegheny Township will be sentenced Jan. 9. The couple said they helped Henderson to collect about $415,000, for which they received about $41,000.
• Susie Horning, 56, of Leechburg will be sentenced Jan. 23 for $250,000 in claims submitted in her name. Prosecutors said she received kickbacks of a least $26,000 and free use of a New Kensington residence.
• Kendra Huddleston, 45, of Littleton, N.C., will be sentenced Jan. 23 on guilty pleas to health care fraud, conspiracy and income tax evasion for submitting numerous fake medical bills to Highmark and filing a fraudulent tax return for 2000.

Read the story here and here.

Read the plea agreement here.

Read the information here.