American Pain Management owner Scott Novick was sentenced to more than six years in prison — plus three years of supervised release — for participating in a $2.2 million Medicare fraud scheme, according to the U.S. Department of Justice.
After pleading guilty to one count of conspiracy to commit healthcare fraud, Mr. Novick was sentenced to 78 months behind bars. He was ordered to liquidate several financial accounts worth about $1.3 million and pay the money back to Medicare.
In addition to American Pain Management, which had locations in Florida's Broward and Palm Beach counties, Mr. Novick owned Miami-based Pacific Pharmacy, which filled most of the prescriptions written at American Pain Management. Pacific Pharmacy received more than $1 million for drugs that weren't eligible for reimbursement, authorities said.
As part of his plea deal, Mr. Novick admitted to the following:
- Submitting about $1.2 million in fraudulent claims to Medicare for pain management services that weren't eligible for reimbursement
- Falsely listing a relative as the owner of Pacific Pharmacy in order to subvert Florida law and continue dispensing controlled substances
- Knowledge of inappropriate and illegitimate prescribing of drugs by the physician at American Pain Management
- Illegally bringing in about $1.4 million for himself and his clinics
Mr. Novick's case was brought as part of the Medicare Fraud Strike Force, which has charged nearly 4,000 defendants with illegal billing practices since it was established in 2007.