The DOJ announced that a federal jury recently convicted Dr. José Alzadon of Paintsville, Kentucky; Michael Bregenzer of Richmond, Texas; and Barbie Vanhoose of West Van Lear, Kentucky, for orchestrating a scheme that fraudulently billed Medicare and Kentucky Medicaid for over $8 million.
According to evidence presented at trial, the trio operated through Kentucky Addiction Centers (KAC), which served communities in Winchester, Paducah, Paintsville, and London, Kentucky. Dr. Alzadon, acting as KAC’s medical director, prescribed Suboxone, a controlled substance used to treat opioid addiction, while Bregenzer served as CEO and Vanhoose as billing manager. Together, they manipulated health care systems by falsely billing taxpayer-funded programs for services that were either not performed or exaggerated in complexity. The trio even used the identity of Dr. Alzadon’s elderly father to bypass insurance credentialing issues and to prescribe controlled substances using his DEA credentials.
All three defendants were convicted of multiple charges, including conspiracy to commit health care fraud, health care fraud, and conspiracy to distribute controlled substances using another person’s DEA registration number. Dr. Alzadon and Vanhoose also faced charges of aggravated identity theft. The defendants now face up to ten years in prison for each health care fraud count and additional mandatory minimum sentences for identity theft convictions. This matter underscores the Justice Department’s commitment to combating health care fraud through its Health Care Fraud Strike Force Program.
The attorneys at Chilivis Grubman also represent clients of all types and sizes in connection to healthcare fraud investigations and litigation. If you need assistance with such a matter, please contact us today.