South Dakota

S.D. Farm Couple Pleads Guilty to $1.3 Million Scheme: A Rapid City, S.D. couple has pleaded guilty in U.S. District Court to conspiring to defraud the U.S. government out of more than $1.3 million in farm benefits.

Connie S. Finneman, 46, and David M. Finneman, 50, were both indicted in late 2003 on multiple counts of conspiracy to defraud the government, wire fraud and federal crop insurance fraud. Other members of the couple’s family were later indicted on various counts of conspiracy, wire fraud and federal crop insurance fraud in the same case. According to federal court documents, the Finnemans have each pleaded guilty to one count of conspiracy to defraud the United States and one count of conspiracy to make false statements to the Federal Crop Insurance Corporation. Each could face a maximum of five years in prison and a $250,000 fine when sentenced Dec. 6. The couple has agreed to pay $1 million in restitution. Court documents indicate that between 1996 and 1999, the Finnemans farmed in Ziebach, Meade, Pennington and Bennett counties and received payments from the Farm Service Agency and Federal Crop Insurance Corporation, also known as Risk Management Agency. After reaching their annual payment limit, the couple illegally circumvented the law by conspiring to sign up three relatives to receive FSA benefits, knowing they were not eligible for those benefits. Prosecutors say the couple created “sham ownership farming operations” allegedly operated by other family members. On paper, the operations appeared to be separate, but each farm was owned, operated or leased by the Finnemans. Benefits received by the sham operations were directed to the Finneman’s accounts. According to court documents, Connie and David Finneman received about $1.35 million in federal farm benefits to which they were not entitled.

Ohio Clinic Owners Plead Guilty in Fraud Case: The owners of the former MedBack chiropractic clinics in Toledo and Northwest Ohio have entered into plea agreements in federal court for a conspiracy and money-laundering scheme to defraud $4.8 million from federal and private insurers.

Chiropractor Paul M. Neumann, 46, and his brother, Timothy D. Neumann, 44, pleaded guilty in U.S. District Court to one count each of conspiracy to commit health-care fraud and conspiracy to commit money laundering.

They are accused of employing medical doctorsto submit false claims to public and private health-care insurers, concealing that patients were receiving noncovered chiropractic services.

In exchange for the pleas, the Neumanns agreed to cooperate in the investigation and testify at the trial of James N. Altiere III, a Monroe lawyer who was the in-house legal counsel for the company.

Altiere, 42, has pleaded not guilty to an eight-count indictment for his alleged involvement in the billing practices. No trial date has been set.

The agreements call for sentences of 37 and 31 months, respectively, for Paul Neumann and his brother. They will be sentenced by Judge Carr after the prosecutor’s case against Altiere is resolved.

The plea deal also requires the Neumanns to pay $1.7 million in restitution to the insurers for false billing claims and forfeit nearly $1.6 million in property and money to the government.

In addition, they must reimburse $550,000 to the government for the cost of the investigation and each is to pay $75,000 in fines. The agreement also calls for the Neumanns to be excluded from participating in federal health-care programs for 15 years.

The offices of MedBack were searched in October, 2000, when federal agents seized 973 boxes of records and the contents of nearly 20 computers. Agents interviewed 80 people associated with the former MedBack, including staff, physicians, chiropractors, and patients.

Illinois

U.S. Attorney Joints Ill. Lawsuit Against AmeriGroup: U.S. Attorney Patrick Fitzgerald has filed a request to join a whistleblower lawsuit against AmeriGroup Illinois that accuses the insurer of defrauding Medicaid, the government health plan for the poor, as means of boosting profit.

The case centers on former AmeriGroup employee Cleveland Tyson, who charges that the insurer submitted false claims for Medicaid reimbursement.

Tyson says the insurer sought Medicaid money from the government even though it avoided enrolling pregnant women and other people with expensive health conditions. Medicaid is funded by both federal and state governments and is administered by state officials.

Fitzgerald will present a motion to intervene in the case last month. He would join Illinois Attorney General Lisa Madigan, who also joined the civil lawsuit.

Topics USA Fraud Agribusiness Illinois