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Psychiatrist Gets Jail Term, Must Pay $20M+ for Houston PWC Scheme

HOUSTON--A psychiatrist has been sentenced to prison and ordered to pay more than $20 million in restitution for his role in a multi-million-dollar power wheelchair scheme.

At a Dec. 5 sentencing hearing, U.S. District Judge Lee Rosenthal sentenced Dr. Lewis Gottlieb to six-and-a-half years in federal prison without parole. He must also pay more than $20.6 million in restitution to the government and forfeit an additional $19 million in proceeds and property derived from the scheme.

According to a release from the U.S. Attorney's Office, Southern District of Texas, Gottlieb was one of several people indicted in September 2003 for his involvement in the Houston-area scheme..

At his re-arraignment hearing, Gottlieb admitted that beginning in October 2001, he was offered a kickback of $85 for each CMN he signed approving a Medicare beneficiary to receive a power chair. Later, officials said, Gottlieb signed hundreds of CMNs in exchange for $200 kickbacks from numerous DME owners and individuals who recruited Medicare/Medicaid beneficiaries, the majority of whom did not qualify under program guidelines.

Access Medical Supply, Senior's Comfort Care Medical Supply, Thurman Family Medial Supply and 1st Choice Medical Equipment and Supply were among the DME companies that paid kickbacks for CMNs, the release said. A review of claims submitted by these companies revealed that they fraudulently billed Medicare/Medicaid for providing PWCs to beneficiaries when, in fact, either a less expensive scooter or nothing at all was provided.

In addition to receiving kickbacks, Gottlieb required each beneficiary that recruiters brought in to sign a form indicating they were in need of psychiatric services and authorizing him to bill Medicare. If they refused, Gottlieb refused to sign the CMN authorizing the power chair.

Earlier this year, Dr. Charles Skripka, Dr. Jayshree Patel and DME owners Dennis Brown, Harold Iyalla and Pius Ekiko also were convicted in connection with the scheme and are scheduled for sentencing on Feb. 20.

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