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Fort Wayne doctor to repay government for Medicare kickback scheme

WHEELING, W.Va. (AP) — A federal prosecutor in West Virginia says four physicians from Indiana, Kentucky and Tennessee have agreed to pay more than $1.5 million to the government for their roles in a kickback scheme.

A statement from U.S. Attorney Bill Powell of West Virginia's northern district says the doctors caused false claims to be submitted to Medicare by participating in a scheme with Southwest Laboratories and Medscan Laboratory.

“We will continue to do our part to recover all proceeds of improper claims paid by the United States.  Fraud and abuse will never be tolerated in this district, and we will continue to pursue those who have obtained taxpayer dollars by improper means,” said Powell.

The doctors agreed to a settlement with the government for violations to the Federal False Claims Act, the Physician Self-Referral law (“Stark”), and the Anti-Kickback Statute.

  • Dr. Julie Y. Chao, of Fort Wayne, Indiana, who paid $650,000
  • Dr. Carolyn Kochert, of Lafayette, Indiana, who paid $129,682.84
  • Dr. Thomas Baker, of Tennessee, who paid $484,481.80
  • Dr. Larry L. Zhou, of Kentucky, who paid $277,758.18
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