Former Michigan lawmaker to receive 3 years' probation for healthcare fraud

A judge sentenced 61-year-old former state lawmaker Paul DeWeese, MD, to three years' probation and a $5,000 fine after finding him guilty of directing others to make and use false documents in connection with claims submitted to Blue Cross Blue Shield of Michigan, according to the Department of Justice.

According to DOJ officials, Dr. DeWeese became president and CEO of Lansing, Mich.-based NBO Medical following his two-term run as a state representative from 1998 to 2002. NBO Medical consisted of a chain of clinics dedicated to treating peripheral neuropathy with a combination of nerve block injections and electrical stimulation treatments.

In April 2012, Dr. DeWeese pled guilty to charges of criminal healthcare fraud after failing to adhere to policies mandated by Blue Cross Blue Shield of Michigan which required physicians to supervise nerve block injections administered by nurse practioners. Dr. DeWeese admitted to officials that instead of supervising his assistants, he instructed them to place his signature on electronic medical records, falsely claiming that the individuals had been supervised. Blue Cross Blue Shield of Michigan would not pay a claim unless it had documented proof a physician had supervised the injections.

In March 2016, Dr. DeWeese and NBO Medical agreed to pay $273,496.67 to Medicare and Medicaid to settle a civil lawsuit that claimed NBO Medical violated the False Claims Act and the Michigan False Claims Act by failing to refund overpayments for improper billing. Under the terms of the settlement, Dr. DeWeese also agreed to pay a $15,000 fine and surrender his DEA registration to resolve allegations he violated the federal Controlled Substances Act by prescribing opioids and medication such as Ritalin and Adderall to patients without the appropriate diagnoses.

The lawsuit was filed under the qui tam provision of the False Claims Act.

Dr. DeWeese also agreed to surrender his medical license as part of a separate licensing action filed by the Michigan Bureau of Licensing and Regulatory Affairs and the Michigan Attorney General's Office earlier this year.

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