A doctor in Alexandria, Louisiana, pleaded guilty on Tuesday to conspiracy to violate three different federal laws in connection with a return program to defraud both federal and private workers’ compensation insurances, according to a statement from the U.S. District Attorney’s Office. in Arkansas.
Dr. Robert Clay Smith, who risks up to five years in prison, withdrew from the prosecution by a grand jury and pleaded guilty to criminal information accusing him of conspiracy to commit healthcare fraud, frauds and illegal compensation. He is the second doctor to plead guilty to a system involving painkillers.
Legal documents claim that the basic premise of the program, which ran from 2013 to 2017, was that individuals associated with a Rogers-based medical delivery and billing company recruited Dr. Smith to distribute pain creams and patches to their workers by offering him a breakdown of the profit. The Rogers company acted as a billing agent for Dr. Smith handled all the paperwork and submitted the alleged fraudulent claims to both the U.S. Department of Workers’ Compensation Programs, which cover all federal employees, and also to private insurance companies.
In exchange, Dr. acknowledged Smith, the company paid him up to 55% of the profits collected from successful billing insurance companies, with a surcharge of 15 to 20 times what the medicines actually cost.
According to court documents, Dr. Smith more than $ 650,000 on the system. He admitted that, in addition to receiving illegal returns, he knew he did not have a license to dispense medications from his clinic, which is required by Louisiana law, and yet purchased topical medications from the Rogers company and distributed them to his workers as compatible patients from his clinic. .