Feds seek funds from doctor suspected of insurance fraud

Sept. 12--The U.S. Attorney's Office wants to permanently confiscate nearly $40,000 from an Altoona-area pain clinic doctor under investigation on suspicion of conspiring with a Westmoreland County drug-testing lab to defraud insurance companies, Medicare and Medicaid.

Prosecutors this week said in court papers that Dr. John Johnson, an anesthesiologist and owner of Lighthouse Medical, a series of six pain clinics, engaged in a kickback scheme with William J. Hughes, owner of Universal Oral Fluid Laboratories in Greensburg.

Prosecutors said Mr. Hughes and his lab paid doctors kickbacks so they would exclusively use the lab for drug testing of all oral swabs that doctors took from patients.

The lab billed private insurers, Medicaid and Medicare and then paid a kickback to the doctors who made the referrals, according to the FBI.

Prosecutors said Mr. Hughes discussed with Dr. Johnson how to "ramp up" swabbing to the insurance companies with the largest kickback potential to increase their illegal profits.

Universal Oral and Mr. Hughes paid Dr. Johnson$2 million between 2011 and 2013, according to the FBI. In addition, Dr. Johnson billed insurers for tests that were never performed or unnecessary, agents said.

On March 19, the FBI and IRS raided Dr. Johnson's medical office on Walnut Avenue in Altoona and his home and seized $39,000.

Prosecutors previously moved to forfeit $754,000 seized from Mr. Hughes.

They also moved this week to forfeit a 1999 Bentley Azure seized from Jeffrey Alan Thomas in Aliquippa, who ran the day-to-day operations for Universal Oral lab.

The U.S. attorney's office said the Bentley was a gift to Mr. Thomas from Mr. Hughes.

Torsten Ove: [email protected] or 412-263-1510.

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