FBI agents raided Chicago’s Sacred Heart Hospital in April, arresting its CEO, Edward Novak, its CFO, Roy Payawal, and four physicians in connection with a Medicare/Medicaid fraud scheme that targeted patients for unnecessary, risky procedures, including sedation, penile implants, and tracheotomies. Employees worked undercover with the FBI gathering evidence as part of a three-year investigation leading up to the raid. A fifth physician is accused of prescribing hydrocodone, a commonly abused painkiller, without authorization. The investigation also involves 11 more people, who are only identified in government court filings by letter, such as Administrator A or Physician D.
The conspiracy brought in more than $2 million in reimbursements, and over $225,000 in cash kickbacks were paid to the physicians involved since 2012, prosecutors say. The crooked Docs also received indirect kickbacks, such as covering the salaries of employees and “training costs” for non-existent students.
According to acting U.S. Attorney Gary … (Continued…)