Physician sentenced to 10 years in prison for $70M fraud scheme

A Texas physician was sentenced to 10 years in prison for causing the submission of more than $70 million in fraudulent claims to Medicare for medically unnecessary orthotic braces and genetic tests ordered through a telemarketing scheme.

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David Young, MD, 61, of Fredericksburg, was also ordered to pay more than $26.6 million in restitution, according to a Jan. 15 Justice Department news release.

Dr. Young was convicted in May by a federal jury of one count of conspiracy to commit healthcare fraud and three counts of false statements relating to healthcare matters. 

Dr. Young prescribed braces and genetic tests for more than 13,000 Medicare beneficiaries, including undercover agents posing as different Medicare beneficiaries, many of whom he did not see, speak to or otherwise treat. 

The false prescriptions were used by brace supply companies and laboratories to bill Medicare more than $70 million. Dr. Young was paid $475,000 in exchange for signing the fraudulent prescriptions. 

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