Doctor Sentenced to Over 10 Years for $54 Million Medicare Fraud Scheme.
Dr. Daniel R. Canchola, a 54-year-old physician from Flower Mound, Texas, has been sentenced to 10 years and one month in prison for his role in a staggering $54 million Medicare fraud operation. The Texas court also ordered Canchola to pay over $34 million in restitution, reflecting the extensive financial damage caused by his actions.
The Scheme Unveiled
Court documents reveal that between August 2018 and April 2019, Dr. Canchola engaged in a fraudulent scheme that involved the electronic signing of orders for durable medical equipment (DME) and cancer genetic testing. Notably, these orders were processed without any direct patient interaction or legitimate medical necessity. Canchola was aware that these fraudulent orders would be used to submit false claims to Medicare, yet he continued to sign them, receiving approximately $30 for each order.
Kickbacks and Targeted Marketing
Dr. Canchola’s actions facilitated the submission of more than $54 million in false claims to Medicare, resulting in kickbacks totaling over $466,000. The patients targeted by these fraudulent practices were often recruited through aggressive telemarketing campaigns and health fairs. Many of these beneficiaries were misled into undergoing unnecessary medical tests and receiving equipment, raising significant ethical and legal concerns.
In October 2022, Canchola pled guilty to conspiracy to commit wire fraud, admitting his involvement in this elaborate scheme designed to exploit Medicare for personal gain.
Implications of the Verdict
The sentence handed down by the Texas court serves as a stark reminder of the legal consequences associated with healthcare fraud. This case not only highlights the individual culpability of medical professionals but also sheds light on the broader issues of fraudulent practices that undermine the integrity of healthcare systems.
Related: Georgia Woman Sentenced to 12 Years for $30 Million COVID-19 Unemployment Fraud