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. 

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