2 Erie oral surgeons indicted over billing practices

July 13--ERIE, Pa. -- John F. Lehrian and David E. Palo, who practiced together as Lehrian and Palo Oral Surgery in Erie, billed insurance companies for pulling lots of teeth between 2008 and 2014.

The U.S. attorney's office in Erie is alleging that many of those bills were fraudulent because the oral surgeons never needed to surgically extract many of the teeth -- 26 for Palo and 21 for Lehrian.

In Palo's case, the U.S. attorney's office said in indictments filed Tuesday, he billed insurance companies for surgically extracting nine baby teeth -- including six from one patient during one visit -- when the teeth never had to be pulled.

Palo, according to his indictment, billed for performing "a surgical extraction of a tooth, when in truth and in fact, as the defendant well knew, the procedure involved a baby tooth that did not require surgical extraction for removal."

Palo, 49, of the 2100 block of South Shore Drive, Erie, was indicted on charges he submitted $232,674 in fraudulent bills between January 2008 and June 2014.

Lehrian, 69, of the 5700 block of Bonaventure Drive, Fairview Township, was indicted on charges he submitted $90,734 in fraudulent bills over the same period. Lehrian is retired.

One of Palo's lawyers called the indictment meritless and said Palo is practicing with what is now known as Presque Isle Oral Surgery.

"We absolutely disagree with the indictment and will be fighting the charges," said David Ridge, who represents Palo with another Erie lawyer, Michael Agresti. "The procedures that the doctor utilized were necessary and the billing was appropriate. And he will remain open for business while we take this matter to trial."

Neither Lehrian nor a lawyer for him could be reached for comment. Lehrian retired in 2014 from Lehrian & Palo Oral Surgery, the practice said. The practice -- now Presque Isle Oral Surgery -- has an office at 100 State St. and offices in Corry, Titusville and Seneca, according to its website.

The FBI investigated the case, in which a grand jury indicted Palo and Lehrian separately. Palo was indicted on 27 felony charges -- one count of health care fraud and 26 counts of making false statements to health care matters, related to billing records for 26 teeth, the indictment said.

Lehrian was indicted on 21 felony charges -- one count of health care fraud and 20 counts of making false statements to health care matters, over 20 teeth.

Lehrian is not accused of billing for the removal of baby teeth. He is accused of billing for surgical extractions that were unnecessary because, among other things, the teeth were decayed, erupted or had "a root structure that did not require surgical extraction," according to the indictment.

In addition to be accused of billing for the removal of baby teeth, Palo is accused of billing for surgical extractions when, among other things, "the procedure involved a patient with bone loss such that a surgical extraction was not necessary."

Palo and Lehrian will be charged by summons as they await arraignment in federal court in Erie. Assistant U.S. Attorney Christian Trabold is recommending they remain free on unsecured bonds of $10,000.

ED PALATTELLA can be reached at 870-1813 or by email. Follow him on Twitter at twitter.com/ETNpalattella.

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