Chicago podiatrist pleads guilty in St. Louis to $7 million fraud

May 12--ST. LOUIS -- A Chicago podiatrist and health care company owner pleaded guilty in federal court here Friday admitting he defrauded Medicare out of more than $6 million.

Dr. Yev Gray, 49, pleaded guilty to a conspiracy charge and a charge of making a false statement relating to health care as part of a deal that is likely to earn him 7 1/2 years in prison at an August sentencing hearing. Gray will also be ordered to repay $6,974,895 .

Gray owned Aggeus Heathcare and was the majority owner of Aggeus Global, companies that grew to have offices in 16 states and provided podiatry and other services to thousands of patients, including nursing home residents.

The investigation began in December 2013 when the relative of an investigator with the Department of Health and Human Services Officer of Inspector General began questioning Aggeus services provided at a Missouri nursing home, court records show.

Assistant U.S. Attorney Dorothy McMurtry said Gray "orchestrated and participated in a wide-ranging scheme" from 2009-2015, one part of which involved Gray's creation of an electronic medical record system.

Gray's system, McMurtry said, automatically generated fraudulent "canned language" in patient medical records that "pretty much assured that Medicare would pay" for procedures that wouldn't otherwise be covered.

Podiatrists complained about inaccurate medical notes or potential fraud, as did more than 20 facilities where Aggeus provided services, McMurtry said. The nursing homes complained that the "bills were all the same," she said, and that Aggeus records indicated pain when there was none or other problems that weren't supported by independent medical records.

The plea says that Aggeus marketers told assisted living facilities or long term care facilities that their podiatrists would treat every resident, regardless of their insurance, for no cost to the facility. But at some point, they stopped treating residents covered by Missouri Medicaid, because Medicaid stopped paying for certain procedures.

The plea says that the company performed unnecessary medical procedures, giving an example of false claims about a patient in a Maryland Heights facility, including that his toenails "are painful to such a degree as to affect ambulation and balance."

Under federal sentencing guidelines, Gray could have faced 97-121 months in prison, but both sides agreed on a 90-month sentence. U.S. District Judge Ronnie White could still reject the deal, however.

Gray's medical license was suspended in 2015, state records show.

Gray's former partner, James Sayadzal, 52, of Chicago, pleaded guilty in August to a conspiracy charge. Sayadzal was CEO of Aggeus Healthcare and a part owner of Aggeus Global.

Gray's wife, Natalie Gray, 44, pleaded guilty in September to a conspiracy charge. The lawyer and former director of corporate and legal affairs for Aggeus Healthcare was sentenced to 366 days in prison and ordered to repay $990,061.

Her plea says that the Grays committed the fraud to fund a "lavish lifestyle" that included multiple luxury vehicles and expensive homes inside and outside the country.

In 2011, the couple's 4,000-square foot Chicago home was profiled in a Chicago magazine story that gushed about the "awe-inspiring" interior.

A contract podiatrist with Aggeus, Robert A. Gjertson, pleaded guilty Wednesday to making a false statement charge and admitted falsely stating that a resident at a care facility in Sweet Springs, in Saline County, needed treatment for painful, ingrown toenails.

Gjertson could face 24 to 30 months in prison under federal sentencing guidelines. His public defender did not immediately return an email seeking comment.

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