A 16-count superseding indictment charged Michael Kestner, 67, of Nashville, Tennessee, Brian Richey, 37, of Cookeville, Tennessee, Daniel Seeley, 58, of Batesville, Mississippi, and Jonathan White, 49, of Tullahoma, Tennessee, with conspiracy to commit healthcare fraud and multiple counts of healthcare fraud. According to the indictment, Kestner was the owner and CEO of MMI and was the majority owner of Pain MD. Richey, Seeley and White were employed by MMI, which managed Pain MD. Pain MD operated pain and wellness clinics throughout middle Tennessee, Virginia, and North Carolina and Michael Kestner, who has neither medical training nor certifications, served as its president. Pain MD represented itself to be an “interventional” pain management practice and it claimed to provide procedures, including injections and durable medical equipment (“DME”) that were intended to reduce patient reliance on opioids and other narcotic pain medications. The indictment alleges that, in fact, these practices were intended to increase revenues for Pain MD and to personally enrich Pain MD providers. Between 2010 and continuing through May 2018, the indictment alleges that Kestner, Richey, Seeley and White conspired to enrich themselves and their employers by submitting false and fraudulent claims to Medicare, Medicaid and TRICARE. Kestner and others took steps to ensure Pain MD providers increased their “productivity” by providing more and more services, without consideration of whether those services were medically reasonable and necessary.
