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. 


Corker Applauds President Trump’s Executive Order On North Korea

Senator Bob Corker on Thursday released the following statement after President Donald Trump issued an executive order that authorizes additional U.S. sanctions on revenue streams that support North Korea’s nuclear and ballistic missile programs:   “I support and appreciate President Trump’s strong action today against North Korea and his efforts to work closely with ... (click for more)

Dalton Police Department Investigating Fraudulent Credit Card Transactions

The Dalton Police Department is investigating three different fraudulent credit card transactions at a local tire store that resulted in the theft of more than $4,000 worth in tires. The suspects who picked up one of the sets of tires were photographed by the store owner. The fraudulent transactions took place on Aug. 14 and Aug. 25 at Arevalo’s Tires and Service at ... (click for more)

September Is Prostate Cancer Awareness Month

The calendar fills up quickly in September as families return to a packed routine after quieter summer days. Unfortunately, your health might take a backseat to your busy schedule. So make a note on your calendar that September is Prostate Cancer Awareness Month, and remind yourself—or the men in your life—about the importance of a healthy prostate.   Prostate cancer is ... (click for more)

Roy Exum: McQueen & Her TVAAS

If I am reading my Ouija Board right, I suspect the Hamilton County School Board will vote to allow a controversial “partnership” to be formed with the state Board of Education tonight at its monthly meeting. State Education Commissioner Candice McQueen has said she will demand the one-sided partnership to take over the operation of five at-risk schools in Hamilton County and, if ... (click for more)

Impressive Signal Mountain Whips Red Bank, 3-0

The Signal Mountain Lady Eagles have one of the better volleyball teams in town this fall and it’s no surprise that they are unbeaten in district play. They proved just how good they are Tuesday evening in Red Bank’s Susan Ingram Thurman Gymnasium as they needed about 50 minutes to beat the Lionettes for the second time this season. Set scores were 25-6, 25-7 and 25-15. ... (click for more)

Vols. UMass Matchup Pits 1998 National Champions

Tennessee takes on UMass on Saturday at Neyland Stadium. The game will feature a noon ET kickoff on SEC Network.     Tennessee (2-1) is coming off a 26-20 road loss to Florida on Sept. 16. Junior running back John Kelly set career highs with 141 rushing yards and 96 receiving yards and played a major role in the Vols' second half rally before the Gators ... (click for more)