South suburban man charged in $1M Medicare fraud scheme

2012-05-02T14:00:00Z 2012-05-02T20:46:31Z South suburban man charged in $1M Medicare fraud schemeBy Times Staff nwitimes.com
May 02, 2012 2:00 pm  • 

CHICAGO | A Richton Park man who claimed to provide psychotherapy services to Medicare patients through a Chicago Heights facility he co-owned is charged in federal court with participating in a $1 million health care fraud scheme, federal officials said Wednesday.

Bryan Day, 42, is not a licensed medical professional, according to a news release from the U.S. Justice Department. Day operated and was part owner of Charm Development LLC, at 514 W. 14th St. in Chicago Heights. The facility claimed to provide psychotherapy services to patients primarily in nursing homes and long-term care facilities, the release states.

Day is charged with six counts of health care fraud and is scheduled to be arraigned May 14 in federal court in Chicago.

Federal prosecutors say that between January 2008 and June 2009, Day submitted fraudulent claims to Medicare totaling more than $1 million. Medicare paid out about $438,852 from the claims.

Day submitted the claims for individual psychotherapy services allegedly performed by a doctor, who is unnamed in the news release. Prosecutors said that Day knew the doctor did not provide the services claimed, the release states.

The claims included services that allegedly were provided at times when the doctor was not present at the Chicago Heights facility and not licensed by the state. The claims also include services that allegedly were provided by the doctor after the doctor was no longer employed by Charm, and Day allegedly submitted Medicare claims for services rendered in excess of 24 hours a day.

The release states the doctor was licensed to practice medicine in Illinois until July 31, 2008, and the doctor was employed by Charm from May 2005 until February 2009.

The indictment seeks the forfeiture of about $438,852. Each count of health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine or an alternate fine totaling twice the loss or twice the gain, whichever is greater.

The case is part of a nationwide takedown by Medicare Fraud Strike Force operations in seven cities that led to charges against 108 individuals for alleged schemes to collectively submit more than $455 million in fraudulent Medicare claims.

The strike force expanded to Chicago in February 2011, and approximately three dozen defendants have been charged in health care fraud cases since then.

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