Central Washington Doctor gets 1 year, 1 day in federal prison for fraud

A central Washington physician was sentenced Wednesday to just over a year in federal prison for altering recalled breathing devices and billing Medicaid for them as new, federal prosecutors said.

Dr. Eric Edward Haeger, 57, of Brewster, was sentenced March 25 by U.S. District Judge Rebecca L. Pennell to one year and one day in prison, followed by one year of supervised release.

He was also ordered to pay a $60,000 fine and $349,272.79 in restitution after pleading guilty to adulterating and misbranding medical devices with intent to defraud.

According to court documents, between July 2021 and July 2023, Haeger purchased more than 500 used and recalled CPAP and BiPAP machines online after a 2021 Philips Respironics recall linked the devices to potential health risks, including toxic or cancer-causing effects.

Prosecutors said Haeger and others, including his children, dismantled the devices and attempted to remove defective foam using tools in non-sterile environments before reassembling them.

The altered machines were then distributed to Medicaid patients through his clinic, Central Washington Medical Associates.

Staff billed Medicaid for the devices as if they were new and in proper working condition, authorities said. The court found that 440 devices were provided to patients and billed for more than $600,000, with Medicaid paying $439,272.79.

Officials said the altered devices posed potential health risks, including exposure to harmful particles and possible malfunction due to tampering with FDA-approved designs.

At sentencing, Pennell said Haeger’s actions were “ongoing and extensive” and undermined trust in the medical profession.

“Dr. Haeger violated the trust of his patients,” said First Assistant U.S. Attorney Pete Serrano. “He prioritized profit over patient health and safety.”

Six defendants, who stole upwards of $10 million from the Virginia Medicaid system over a six-year period by submitting false claims on behalf of 1st Adult N Pediatric Healthcare Services for services that were never provided, were sentenced today in U.S. District Court in Lynchburg.

The three owners of 1st Adult N Pediatric, Carolyn Bryant-Taylor, 61, of Clinton, Md., Kafomdi Josephine Okocha, 50, of Upper Marlboro, Md., and Samuel Okocha, 52, of Upper Marlboro, Md., were sentenced today.

Bryant Taylor was sentenced to 120 months, Josephine Okocha was sentenced to 96 months, and Samuel Okocha was sentenced to 72 months.

Three additional defendants in the healthcare fraud conspiracy were also sentenced.

Eno Utuk, 49, of Fredericksburg, Md., Elizabeth Ilome, 43, of Fredericksburg, Md., and Shekita Gore, 41, of Clinton, Md., were each sentenced to probation.

The district court also directed the defendants to pay restitution totaling $10 million to Virginia Medicaid.

“This United States Attorney’s Office will hold accountable those who commit healthcare fraud and steal from hardworking Americans,” Acting United States Attorney Robert N. Tracci said today. “I commend the FBI and the Virginia Medicaid Fraud Control Unit for their diligent work in bringing these individuals to justice and protecting hardworking Virginians.”

“These sentences make clear that fraud against federally funded programs is theft from the American people. We will continue to work with our partners to ensure those who steal taxpayer funds are held accountable,” said Ian Kaufmann, Special Agent in Charge of the FBI’s Richmond Division.

According to court documents, Bryant-Taylor, Josephine Okocha, and Samuel Okocha were owners and operators of 1st Adult N Pediatric Healthcare Service, a Medicaid-enrolled home health agency providing private duty nursing, personal care, and respite care services throughout the Commonwealth of Virginia, including in the Western District of Virginia. Gore was the director of nursing, while Utuk and Ilome were employed by 1st Adult to provide nursing and personal care.

The defendants conspired to submit false claims to Medicaid for services that were not provided to patients, including falsifying records and documentation in support of the fraudulent claims submitted for reimbursement.

As part of this scheme, between 2017 and 2023, Bryant-Taylor and her co-defendant, Josephine Okocha, planned arrangements to pay the parents or guardians of patients in exchange for blank, signed nursing notes which would be filled out and used to support billing to Medicaid. In these arrangements, the amount billed to Medicaid either reflected nursing services that were not provided at all, or an amount of nursing services that was in excess of what was provided.

The conspirators have acknowledged the actual loss to the Medicaid program from 1st Adult’s improved billing was $10,000,000.

The Federal Bureau of Investigation and the Virginia Attorney General’s Medicaid Fraud Control Unit are investigating the case, with assistance from the United States Department of Health and Human Services.

Assistant U.S. Attorneys Jonathan Jones and Laura Taylor, and Special Assistant U.S. Attorney Nicole Terry, a Senior Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.

The owner of a telemedicine company pleaded guilty today to organizing and leading a $46.2 million Medicare fraud conspiracy that spanned more than six years.

According to court documents, Christopher Harwood, 43, of Fort Lauderdale, Florida, admitted that he owned and operated a telemedicine company called TelevisitMD. Harwood and his co-conspirators targeted Medicare patients through aggressive telemarketing campaigns, inducing them to accept orthotic braces and genetic tests that they did not need. Harwood paid doctors to approve orders for these braces and genetic tests. These doctors did not follow Medicare’s rules for telemedicine visits, did not have real medical relationships with the Medicare patients, and often signed orders for orthotic braces and genetic tests without any meaningful interaction with the Medicare patients. Harwood then sold the signed doctors’ orders to durable medical equipment (DME) supply companies, laboratories, and marketers who were part of the scheme.

Harwood also owned and operated multiple DME supply companies based in Florida that he used to bill Medicare millions of dollars for orthotic braces that Medicare patients did not want or need. In total, at least $46.2 million in false and fraudulent claims were submitted to Medicare as part of Harwood’s scheme. Medicare paid $17.9 million based on these claims, and Harwood personally received more than $10.4 million from the fraud scheme.

Harwood pleaded guilty to conspiracy to commit health care fraud and wire fraud and agreed to pay $17.9 million in restitution. Sentencing will be scheduled at a later date. Harwood faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Brett Skiles of the FBI Miami Field Office made the announcement.

HHS-OIG and FBI investigated the case.

Trial Attorney Owen Dunn of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

A Texas man was sentenced Wednesday to 150 months in prison and two years of supervised release for organizing and leading a $61.5 million health care fraud and wire fraud conspiracy in which thousands of Medicare beneficiaries who were the victims of deceptive telemarketing were sent thousands of orthotic braces, foot baths, and genetic tests they did not need.

According to court documents and evidence presented at trial, Robert “Bobby” Leon Smith III, 50, of Archer City, Texas, owned and operated seven durable medical equipment (DME) supply companies based in Florida, Texas, and Maryland through which he submitted millions of dollars in false claims to Medicare for orthotic braces and foot baths that beneficiaries did not need.

Smith also owned a marketing company based in Texas that he used to conduct deceptive telemarketing campaigns that targeted Medicare beneficiaries for medical services they did not need. Working with an offshore call center located in the Philippines, Smith and his co-conspirators peddled medically unnecessary orthotic braces, foot baths, and genetic tests to Medicare beneficiaries nationwide. In audio recordings presented at trial, Smith was heard pressuring beneficiaries to accept these products even after the beneficiaries protested that they did not need or want them.

Smith obtained doctors’ orders for these products by paying kickbacks and bribes to illegitimate telemedicine companies. He then sold these doctors’ orders to other medical suppliers that he knew used them to submit false and fraudulent claims to Medicare. In another recording presented at trial, Smith was heard complaining about instances in which he bought doctors’ orders he could not sell, calling the orders “trash” and “junk.” Smith’s former business partner testified that they eventually began using “fake” doctors’ orders that contained forged signatures of doctors who were unaware of the scheme.

After four days of a jury trial, Smith pleaded guilty in March 2025 to one count of conspiracy to commit health care fraud and wire fraud and one count of health care fraud. Smith absconded and failed to appear for sentencing. He remained at large for over a month before he was apprehended by the U.S. Marshals Service. At sentencing, the Court ordered Smith to pay $30,158,608.25 in restitution and to forfeit $9,215,225 as well as real estate located in Texas.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Brett Skiles of the FBI Miami Field Office made the announcement.

HHS-OIG and FBI investigated the case.

Trial Attorney Owen Dunn of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.