PHILADELPHIA (WIBW) - A Kansas man has been ordered to pay more than $15.2 million for a national insurance fraud scheme.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania says that on Thursday, Nov. 3, the Honorable Mitchell S. Goldberg entered a default judgment against Timothy Warren, of Wichita, and his company Titan Medical Compliance, LLC. He was ordered to pay a total of $15,270,066 for violations of the False Claims Act.
The Office noted that this is the latest action in the national investigation into a scheme of improper billing involving P-Stim electro-acupuncture devices. P-Stim is also branded as ANSiStim, Stivax, NeuroStim, and NSS-2 Bridge. Federal healthcare programs do not reimburse for these devices.
As alleged in the complaint, Warren - a Wichita chiropractor - and his company falsely promoted auricular electro-acupuncture devices as reimbursable by Medicare and other federal insurers as approved by the Food and Drug Administration. He promoted himself as a medical reimbursement consultant and his company as a compliance consulting firm.
As a result, the Office indicated that various marketers and distributors of P-Stim devices paid Warren a monthly fee to provide coding recommendations to customers. Providers also paid him directly for coding guidance.
Beginning in 2014, court records indicate that Warren promoted the devices as reimbursable and provided instructions on what codes to bill. Those codes, which generated a high amount of...
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