Courts
Jonathan Miano, The Times

Two former doctors who practiced in the Kokomo area were accused Friday of Medicaid fraud in a civil complaint filed at the federal courthouse in Hammond.

U.S. Attorney Thomas Kirsch II and Indiana Attorney General Curtis Hill Jr. allege that Don and Marilyn Wagoner routinely overbilled Medicaid for multiple drug tests of their patient's urine when the doctors only collected and analyzed a single sample from each patient.

Kirsch said altogether the defendants submitted 6,433 false claims between 2011 and 2013 for which they received $1.12 million in payments from Indiana Medicaid.

The governments are seeking triple repayment of the fraudulently received Medicaid disbursements plus a civil penalty of $5,500 to $11,000 for each false claim submitted, or a total of between $38.7 million and $74.1 million.

"Working to recover taxpayer funds taken through fraud and other illegal means is part of our responsibility as stewards of the public trust," Hill said.

Don Wagoner, 81, and Marilyn Wagoner, 80, both of Burlington, Indiana, permanently surrendered their licenses to prescribe drugs and practice medicine in 2013 after a state investigation of their opioid prescribing practices resulted in a felony drug dealing conviction and a two-year prison sentence for Don Wagoner.

"Although they no longer are endangering vulnerable Medicaid patients by practicing medicine, former physicians Don Wagoner and Marilyn Wagoner cannot be allowed to retain the fruits of their fraudulent Medicaid claims," Kirsch said.

"My office will continue to make it a priority to pursue investigations and cases to recover funds that were fraudulently received from the Medicare and Medicaid programs."

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Dan is Statehouse Bureau Chief for The Times. Since 2009, he's reported on Indiana government and politics — and how both impact the Region — from the state capital in Indianapolis. He originally is from Orland Park, Ill.