The Sixth Circuit upheld June 11 the convictions of two individuals on Medicare fraud charges. At the same time, the appeals court vacated the district court's denial of defendants' motion for a new trial. The appeals court remanded for a hearing on evidence defendants said could be favorable to them but to which they were denied access by the government.
Defendants Richard B. White and Michael A. Suhadolnik were indicted on charges of conspiracy, defrauding Medicare, and money laundering. The case arose from an alleged scheme to defraud Medicare by violating the “related party” rules.
White owned and operated a number of health-related businesses. White also owned a financial management and consulting company that prepared cost reports for many of these businesses but failed to identify third-party and management service providers as “related parties” in accordance with Medicare requirements.
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