Physician Sentenced to 18 Months in Kickback Scheme

Thursday, February 14, 2019 | 0

A Florida physician was sentenced to 18 months in federal prison for accepting kickbacks from a provider of durable equipment in exchange for ordering medically unnecessary laboratory tests, and from a drug manufacturer for prescribing its product, the U.S. Attorney for the Middle District of Florida announced.

Dr. Michael Frey, of Fort Myers, pleaded guilty in June to conspiracy to receive health care kickbacks. He also agreed to pay a $2.8 million settlement to resolve allegations in a civil suit that he violated the False Claims Act.

Prosecutors say Frey conspired with the owners of A&G Spinal Solutions to receive compensation for referring patients at his pain management practice to the DME provider. A&G disguised kickbacks in the form of payments to his wife, creating the impression that she was an employee.

A&G owners Ryan Williamson and William Pierce pleaded guilty previously, and each were sentenced to one year and nine months in prison.

Prosecutors say Frey also received cash payments from Williamson in exchange for referrals of compound pain cream prescriptions. The payments were disguised as “speaker fees” paid in connection with his participation in “a largely bogus" Insys Therapeutics speaker event.

Insys manufactures a fentanyl sublingual spray known as Subsys. Insys paid kickbacks to Frey to induce him to prescribe the drug, the U.S. Attorney’s Office said.

Insys Therapeutics Chief Executive Officer Michael Babich pleaded guilty to kickback charges in January.