Chiropractor pleads guilty to health care fraud, tax evasion

 

Date: June 29, 2020

Contact: newsroom@ci.irs.gov

PROVIDENCE – A Providence chiropractor today admitted that he created and executed a scheme to defraud a health care benefits program and that he failed to pay taxes on some of the income he received from his business.

Eugene Kramer, sole owner of New England Spine and Disc Center, admitted to the court that he committed health care fraud by billing for days a patient did not attend treatment, for treatment not provided, and by falsifying medical notes and documentation to support a nonexistent personal injury claim.

As part of the scheme, from January 1, 2018, to December 31, 2018, Kramer provided invoices for chiropractic treatment to an attorney, who then, in order to support a patient's bodily injury claim, provided those invoices to an automobile insurance company in Rhode Island. To bolster the claim, Kramer created falsified medical notes and documentation.

According to court documents, an individual electronically monitored by the FBI visited Kramer's office on 15 occasions for chiropractic treatment, under the pretext of having been involved in an automobile accident. In most instances little or no treatment was provided and few if any medical notes were taken. At no time did Kramer provide the person with a diagnosis or discuss a treatment plan. The individual was emailed a package requesting a monetary settlement in connection with a supposed injury claim to Progressive Insurance requesting, among other things, reimbursement for chiropractic services.

In addition to admitting to executing the health care fraud scheme, Kramer admitted that for tax years 2015, 2016, and 2017, he failed to report a portion of his personal income, resulting in him owing the IRS $66,914.

Appearing today before U.S. District Court William E. Smith, Kramer pleaded guilty to one count each of health care fraud and filing a false tax return, announced Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

Kramer is scheduled to be sentenced on October 2, 2020.

Health care fraud is punishable by statutory penalties of up to 10 years in federal prison, a fine of $250,000, and three years of supervised release. Filing a false tax return is punishable by up to three years in prison, a fine of $100,000, and one year of supervised release.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by IRS Criminal Investigation and the FBI.