Physician gets 9 years for role in $20M fraud scheme

Kenneth Johnson, MD, of Ladera Heights, Calif., has been sentenced to nine years in prison for his involvement in a $20 million scheme to defraud the Medicare and Medi-Cal programs, according to the Department of Justice.

Dr. Johnson allegedly pre-signed thousands of prescriptions, which were used by employees of Manor Medical Imaging in Glendale, Calif., to generate thousands of fraudulent prescriptions for anti-psychotic medications.

Through the scheme, more than $20 million in fraudulent claims were submitted to Medicare and Medi-Cal, of which more than $9 million was paid.

"Dr. Johnson essentially sold his prescription pad when he became part of the conspiracy that defrauded the government out of millions of dollars," said U.S. Attorney Eileen M. Decker. "[Dr.] Johnson played a crucial role in the scheme, which could not have functioned without his medical license lending an air of legitimacy to the clinic."

Including Dr. Johnson, 16 people have been convicted in relation to the scheme run out of Manor Medical, according to the DOJ.

More articles on healthcare industry lawsuits:

5 False Claims Act trends, cases that will fuel recoveries in 2016
Chicago physician gets prison time for role in Sacred Heart kickback scheme
Erlanger sues to recoup $20M loan to Hutcheson Medical Center

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