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Louisiana Doctor Sentenced to Four Years in Prison for Workers’ Comp Fraud Conspiracy

22 Feb, 2023 Jaime Toby

                               

Washington,DC(WorkersCompensation.com) - From 2013 to 2017, Robert Clay Smith, a physician from Alexandria, Louisiana, conspired with a company to dispense pain creams and patches to his workers’ compensation patients, for which he received a split of the profits.

The company acted as the billing agent for Smith, handling all the paperwork and submitting the claims to both the Department of Labor (DOL) Office of Workers’ Compensation Programs, which covers all federal employees, and to private insurers as well.

In exchange, Smith admitted, the company paid him 50 to 55 percent of the profits collected from successfully billing insurers, at markups of 15 to 20 times what the medications cost. Smith was sentenced to 48 months in prison, three years of supervised release, and restitution of more than $800,000 to workers’ compensation insurers for his role in a conspiracy to commit wire fraud, healthcare fraud, and violations of federal anti-kickback laws.

The investigation was conducted by the VA OIG, Defense Criminal Investigative Service, and DOL OIG.

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