Arnold chiropractor admits to $3.5M health care fraud scheme

ST. LOUIS - An Arnold chiropractor recently admitted to a scheme in which he falsely claimed to have a medical license and exaggerated his patients' medical conditions to receive more than $3.5 million in disability payments.

Thomas G. Hobbs, 65, pleaded guilty Thursday to federal charges of conspiracy, admitted conspiring to commit the crimes of health care fraud, making false statements, theft of government funds and Social Security fraud.

Investigators say Hobbs intended to help his patients receive more than $3.5 million in disability payments from the Social Security Administration and private disability benefit insurers.

Hobbs, the co-owner of Power-Med Inc. chiropractic clinic, admitted that he falsely claimed to have a medical license. Despite his lack of a medical license, between 2011 and 2019 he purchased and dispensed prescription medications, administered injections and dispensed medications intravenously to patients.

According to his plea agreement, Hobbs knew he was not permitted to administer injections because the Missouri Board of Chiropractic Examiners placed him on probation for five years for fraudulently billing insurance companies for unlawfully administering injections.

As early as 2011, Hobbs also fraudulently assisted patients in receiving disability benefit payments through the Social Security Administration's Disability Trust Fund and through private disability benefit insurance providers.

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Per the plea agreement, Hobbs charged patients between $2,000 and $8,600 to prepare disability forms. He also coached them to lie to the Social Security Administration and insurers about their ability to perform basic activities such as lifting, standing, walking, sitting, remembering and taking care of their personal needs.

Hobbs is one of ten people indicted from the scheme in 2020. Six others have pleaded guilty. Hobbs could be sentenced up to five years in prison and ordered to pay a $250,000 fine.