Former Brentwood, Tenn.-based Comprehensive Pain Specialists CEO John Davis and CCC Medical executive Brenda Montgomery allegedly exchanged emails alluding to criminal behavior, according to federal transcripts examined by The Tennessean.
What you should know:
1. Federal prosecutors indicted Mr. Davis and Ms. Montgomery for an illegal kickback scheme in April 2018.
2. Ms. Montgomery pleaded guilty to fraud in January 2019. She admitted to paying Mr. Davis upwards of $770,000 to refer CPS patients to her company for medical devices. With the referrals, she submitted about $4.6 million in fraudulent Medicaid claims. Ms. Montgomery is awaiting sentencing.
3. The pair allegedly conspired to forge a dead patient's signature so they could continue billing Medicare in his name.
4. During a court hearing, prosecutors read emails from Mr. Davis and Ms. Montgomery. In an Aug. 30 email to a CPS employee, Ms. Montgomery reportedly wrote, "I'm going to cheat. Don't tell anyone." The employee responded, "I have no idea what you're talking about." Ms. Motgomery then said, "Good. Keep it that way."
Prosecutors said Ms. Montgomery wrote to Mr. Davis later that day, "The patient has died. So can't get delivery ticket signed, but I will fake it. Is that okay with you?" Mr. Davis reportedly replied, "Your call."
5. Mr. Davis, who served as the company's CEO for six years, pleaded not guilty to all charges.
6. CPS abruptly closed dozens of clinics in July 2017. The pain management company had treated more than 40,000 patients a month in eight states.