Two Austin Psychologists, Owners of Psychological A.R.T.S., P.C., and a Patient Recruiter Indicted for Federal Health Care Crimes

As part of the largest coordinated Health Care Fraud enforcement action to date, Federal and state authorities arrested two Austin psychologists who own and operate Psychological A.R.T.S., P.C., announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.

An indictment returned by a federal grand jury in Austin charges 72-year-old Dr. William Joseph Dubin and his son, 32-year-old Dr. David Fox Dubin, with one count of conspiracy to violate the federal anti-kickback law; five counts of paying illegal kickbacks; one count of conspiracy to commit health care fraud; seven counts of health care fraud and aiding and abetting health care fraud; and, six counts of aggravated identity theft, and aiding and abetting aggravated identity theft. A third defendant in this indictment, 67-year-old patient recruiter Glen Elwood McKenzie, Jr., of Cedar Park, TX, is charged with one count of conspiracy to violate the federal anti-kickback law and five counts of receiving illegal kickbacks.

According to the indictment, Dr. William Dubin, and Dr. David Dubin, are licensed psychologists who operated Psychological A.R.T.S. in Austin. McKenzie was the President of the Board of Directors of an emergency shelter house located approximately eighty miles from Austin that provided temporary shelter for crisis intervention and mental health services to children and youth ages 5 to 17 who had been removed from their homes by the Texas Department of Family and Protective Services. The indictment alleges that, in exchange for kickbacks paid to him, McKenzie used his position at the emergency shelter and his contacts with other similar shelters to refer children and youth to Psychological A.R.T.S., for comprehensive mental health assessments. From January 2011 to June 2015, Dr. William Dubin and Dr. David Dubin allegedly caused fraudulent billings totaling approximately $300,000 to be submitted to the Texas Medicaid program and the Texas Vocational Rehabilitation Services program for various psychological services. Upon receipt of payment for their services, the doctors paid McKenzie a 10-percent kickback from the money paid to Psychological A.R.T.S.

According to the allegations of the indictment, Dr. William Dubin, and Dr. David Dubin directed students and interns, who were unlicensed and unsupervised, to conduct psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. The students and interns then prepared psychological evaluation reports, which included the student’s diagnoses of the psychological condition of each child and youth, the student’s impressions of the risk of each child and youth for future obstructive and disruptive behaviors, and the student’s recommendations for future treatment. The indictment alleges that Dr. William Dubin, and Dr. David Dubin, then billed or caused others to send bills to Medicaid that falsely claimed that Dr. William Dubin had done the work that was actually done by the unlicensed students and interns. The Medicaid rules expressly prohibited psychologists from billing for services performed by students and interns. The Medicaid rules allow a psychologist to bill, at a reduced fee, for services provided by a supervised licensed psychological associate. The reduced fee is seventy percent of the fee paid for work performed by the licensed psychologist.

The indictment alleges that Dr. William Dubin, and Dr. David Dubin also directed unsupervised licensed psychological associates to prepare psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. Dr. William Dubin and Dr. David Dubin then billed, or caused others to send bills, Medicaid falsely claiming that Dr. William Dubin had done work that was actually done by the associates. This resulted in a larger payment from Medicaid and a larger percentage of profit for Psychological A.R.T.S., Dr. William Dubin and Dr. David Dubin.

Upon conviction, each count related to illegal kickbacks calls for up to five years in federal prison; each count related to Health Care Fraud calls for up to ten years in federal prison; and, each count related to aggravated identity theft calls for up to two years in federal prison.

This indictment resulted from an investigation conducted by special agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley is prosecuting this case on behalf of the Government.

An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.