Physician Sentenced for Medicare Fraud

FARGO – U.S. Attorney Timothy Q. Purdon announced that John C. Chen, 50, Seattle, Washington, was sentenced on June 30, 2014, before U.S. District Judge Ralph R. Erickson to one year of probation for unlawful possession of an identification feature. Chen, a physician, was also ordered to pay restitution of $56,642.52 to the Centers for Medicare and Medicaid Services, which he satisfied as part of $150,000.00 settlement of a parallel civil proceedings in the Western District of Washington alleging violations under the False Claims Act. Chen was ordered to pay a $25 special assessment to the Crime Victims Fund in addition to his sentence.

Chen pleaded guilty to one misdemeanor count of unlawful possession of an identification feature on June 30, 2014, related to certain claims he submitted to Medicare between 2007 and 2010 for patient services that were not rendered. Chen admitted in a plea agreement that he submitted claims for office visits that did not take place because the defendant was physically outside the United States. The claims, which originated from the Seattle area, were made through Noridian Administrative
Services, now known as Noridian Healthcare Solutions, LLC, a North Dakota based Medicare Administrative Contractor. As part of its responsibilities to Medicare, Noridian Healthcare Solutions, LLC, processes and pays Medicare claims arising from durable equipment suppliers throughout the State of Washington.

The case was investigated by the Department of Health and Human Services, Office of Inspector General, Office of Investigations. The case was prosecuted by Special Assistant U.S. Attorney Matthew Greenley.