Former CEO of pain clinic chain guilty in kickback scheme

John Davis, the former CEO of Brentwood, Tenn.-based based Comprehensive Pain Specialists, was found guilty April 4 for his role in a kickback scheme, according to the Department of Justice.

The seven-day trial of Mr. Davis ended roughly one year after he and Brenda Montgomery, the owner, founder and CEO of CCC Medical, a durable medical equipment company based in Camden, Tenn., were charged in the $4 million kickback scheme.

According to evidence presented at trial, Ms. Montgomery paid Mr. Davis illegal kickbacks in exchange for Medicare referrals for durable medical equipment ordered by Comprehensive Pain Specialists employees. Ms. Montgomery paid Mr. Davis 60 percent of Medicare proceeds collected on claims billed for durable medical equipment ordered by Comprehensive Pain Specialists providers and referred by Mr. Davis, according to the Justice Department.

Mr. Davis was found guilty of one count of conspiracy to defraud the U.S. and violate the Anti-Kickback Statute and seven counts of violating the Anti-Kickback Statute. He's slated to be sentenced later this year.

Ms. Montgomery pleaded guilty in January to one count of conspiracy to defraud the U.S. and violate the Anti-Kickback Statutes and seven counts of violating the Anti-Kickback Statute. She's scheduled to be sentenced May 3.

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