Zachary J. Lipman MD, of Chico, has paid $290,000 to the United States and Michael Woo-Ming MD, of Murrieta, has agreed to pay $85,000 to the United States to resolve allegations arising from a fraud scheme that caused the submission of hundreds of false claims to Medicare. Both settlements relate to a fraud scheme orchestrated by Riverside County chiropractor Kevin Brown, in which Brown used various companies he owned to seek and receive reimbursement from Medicare for surgically implanted neurostimulators at multiple locations within and beyond California, even though the companies did not perform surgery or implant neurostimulators. In a prior settlement with the United States, Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The United States alleges that this scheme violated the False Claims Act and the Anti-Kickback Statute.
With respect to the settlement with Dr. Lipman, the United States had alleged that Lipman solicited and received unlawful kickbacks from Brown in return for Lipman referring his patients to Brown for the furnishing of Stivax devices paid for by Medicare. The settlement with Dr. Woo-Ming resolves allegations that his companies Revive Medical of San Diego, which Woo-Ming co-owned with Brown, and Medical Wellness Group submitted false claims to Medicare for surgically implanted neurostimulators.
