Cleveland Doctor Pleads Guilty To Defrauding Medicare; Must Forfeit And Pay Over $7.4 Million

Monday, November 17, 2014
Dr. Raymond Sean Brown, 44, of McDonald, Tn., has pleaded guilty to using misbranded drugs with the intent to defraud Medicare. 
 
Brown was initially charged in a 35-count indictment alleging crimes involving wire fraud, mail fraud, health care fraud and money laundering. However, he ultimately agreed to plead guilty to an information charging him with the use of misbranded drugs with the intent to defraud.
As part of the plea agreement, Brown also agreed to forfeit $6.765 million seized from his bank accounts in December 2012, and pay an additional $717,000 in cash. 
 
Sentencing is set for March 5, 2015, in U.S. District Court in Chattanooga.
 
Attorney Jerry Summers said, "This was not a pill mill case. Dr. Brown provided services and his patients had no complaints. His mistake was that he provided diluted Botox - in an amount he felt the patient needed - but billed Medicare the full amount."
 
 
The plea agreement on file with the U.S. District Court states that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give. During that time period, he received $7,482,968 in reimbursement from Medicare for Botox injections. Additionally, between 2008 and 2012, Brown did not purchase any FDA-approved Botox and only 254 vials of non-FDA approved Botox, but billed Medicare for 17,766 vials. By pleading guilty, Brown admitted that he received the Botox in interstate commerce for delivery for pay which was misbranded and that he acted with intent to defraud or mislead. 
 
Brown faces a term of up to three years in prison, a fine of up to $250,000 or twice the amount of the gross pecuniary gain, and supervised release of up to one year.  In the Agreed Preliminary Order of Forfeiture filed in U.S. District Court today, Brown agreed to forfeit his interest in $186,091 in a Tennessee Valley Federal Credit Union account and $6,579,517 in an Athens Federal Credit Union account.  He also agreed to pay a monetary judgment in the amount of $717,359.08.
 
This case was investigated by the U.S. Food and Drug Administration-Office of Criminal Investigation and the U.S. Department of Health and Human Services-Office of Inspector General.  Assistant U.S. Attorney Terra L. Bay represents the United States. 


TDOT Begins Slide Repair Work On State Route 68 In Rhea County; Project Expected To Take 4 Weeks

TDOT personnel and contract crews began work Thursday to repair a section of SR-68 near log mile 5 in Rhea County that is currently closed due to a slide that occurred earlier this week.  The work is expected to take approximately four weeks to complete.  The road will remain closed to through traffic as the repairs are underway.  Recent wet weather caused a ... (click for more)

TBI Says Nakayla Sullivan Was Responsible For Death Of Missing Bledsoe Man

  A joint investigation by special agents with the Tennessee Bureau of Investigation, deputies with the Bledsoe County Sheriff’s Department and officers with the Pikeville Police Department has resulted in the arrest of a Pikeville woman on a charge of criminal homicide.   Nakayla Shawnta Sullivan, 25, was arrested and charged with one count of criminal homicide. ... (click for more)

Keep The Gifted Program In The Hamilton County Schools - And Response (2)

I currently have a daughter in fourth grade at Lookout Valley Elementary and a daughter in the eighth grade at Lookout Valley Middle High School. Both of my daughters are very good students, as well as being very good people. I am writing today with a concern. I was made aware that the Hamilton County Department of Education is considering cutting the gifted program ... (click for more)

Roy Exum: A True Tennessean

“Last week I told some Republican friends who have held high office, traditional and true Republicans, who like you are both conservative and compassionate, Christians in their personal faith and public service,” the email began. “These are Tennessee Republicans that I have known for decades, and whom I'd trust with my life and my wife … I told them that my views and values make ... (click for more)

Cagle's One-Hitter Leads South Pittsburg Win

SOUTH PITTSBURG, Tenn. – South Pittsburg pitcher EJ Cagle is starting to refine his one-hitters.   For the second game in a row, the right-hander twirled a complete-game one-hitter, limiting visiting Lookout Valley to a bloop hit in the Pirates’ 10-0 shutout of the Jackets in a matchup of regular-season champions  Wednesday  night.   In ... (click for more)

Bradley Rides Bunch's 3-Hitter To 5-0 Win And 5-3A Baseball Title

Bradley Central’s opening 9-3 loss to Soddy-Daisy in a double-header to decide the District 5-3A regular-season champion on Wednesday, meant second-game starter Andy Bunch, a senior right-hander, needed to turn in a Herculean effort for the Bears. Bunch came through with flying colors at Tom Higgins Field. The hard-throwing Bunch fired a three-hit shutout at the Trojans ... (click for more)