Health Care Fraud and False Statements—David Chase

The federal trial of a Burlington, Vermont eye surgeon is set to begin today.^[1] David Chase is charged with 32 counts of health care fraud and 39 counts of making false statements related to his practice as an eye surgeon.^[2] He is accused of recommending unnecessary surgeries, lying about the seriousness of his patients’ medical problems, and defrauding federal and private insurance programs.^[3]

Health care fraud, which the FBI investigates through its Health Care Fraud Unit,^[4] is covered by 18 U.S.C. § 1347, which we have covered here, and making false statements, in this case, is covered by 18 U.S.C. § 1035.

Making False Statements
It is a crime for a person, in any matter involving a health care benefit program, to knowingly and willfully make any materially false, fictitious, or fraudulent statements in connection with the delivery of or payment for health care benefits, items, or services.^[5]

A violation of section 1035 can be punished by a fine, up to 5 years in prison, or both.^[6]

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[1] Adam Silverman, News Snapshot: Burlington Eye Doctor’s Federal Trial to Begin, Burlington Free Press, Sept. 19, 2005, available here.
[2] Id.
[3] Id.
[4] See Federal Bureau of Investigation, Financial Crimes: Report to the Public, A1 (May 2005), available here. (PDF)
[5] 18 U.S.C. § 1035(a)(2).
[6] Id.