Chiropractor sentenced to prison in $12 million insurance fraud

Published: 2009-03-26 13:15:47
Author: Paula Reed Ward, Pittsburgh Post Gazette, December 20, 2008

Based in part on the cooperation of former Lower Burrell chiropractor Douglas Henderson, the U.S. attorney's office won convictions of 15 other people in a $12 million healthcare fraud scheme.

Of course, noted U.S. District Judge Gary L. Lancaster at the man's sentencing yesterday, those people wouldn't have been in trouble in the first place if it weren't for Mr. Henderson.

"I'm not particularly impressed by it, frankly," the judge said of Mr. Henderson's cooperation. "Mr. Henderson is the person who enticed those people into the scheme, then when he was caught, he turned on those very same people for some benefit to himself."

Judge Lancaster begrudgingly reduced Mr. Henderson's prison term at the government's request from the recommended 70 to 87 months down to four years.

But the judge said neither the cooperation nor the fact that Mr. Henderson has multiple sclerosis are enough to rebut the criminal scheme he led or his manipulation of his patients.

Mr. Henderson, who was diagnosed with MS in 1994, asked for a sentence that did not include prison, saying that he didn't think he deserved a punishment that would make his health problems worsen.

He pleaded guilty in April 2006 to healthcare fraud, conspiracy and income tax evasion.

According to the government, Mr. Henderson submitted false insurance claims from his business, Burrell Chiropractic Center, to Highmark Blue Cross Blue Shield totaling more than $20 million.

Many of those were not approved by the company, said Assistant U.S. Attorney James Y. Garrett, and the total loss associated with the case was $12.1 million.

Mr. Henderson was ordered to pay that amount in restitution.

As part of the scheme, prosecutors say he shared the proceeds from the insurance company with his patients who filed the false claims.

He apologized to Highmark, his patients and family.

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