Saturday, April 17, 2010

Orange County Cancer Doctor Charged with Defrauding Medicare and Other Health Insurers in $1 Million Scam

An Orange County cancer doctor has been charged with fraudulently billing Medicare and other health insurance companies up to $1 million for injectable cancer medications that never were provided.

Glen R. Justice, 65, of Corona del Mar, was named in a five-count criminal information that was filed yesterday afternoon in United States District Court in Santa Ana. In a plea agreement that was also filed yesterday, Justice agreed to plead guilty to five counts of health care fraud.

Justice, who runs the Pacific Coast Hematology/Oncology Medical Group in Fountain Valley, is scheduled to be arraigned in the case on May 3.

The court documents filed yesterday outline a scheme in which Justice defrauded health insurance companies, including Medicare, by billing for injectable cancer medications when patients never received those medications. Further, Justice “upcoded” claims made to health insurance companies by claiming that he administered more expensive injectable medications than were actually given to patients. The medications involved in the scheme included Neulasta, Neupogen, Procrit/Epogen/Aranesp, and Neumega. Justice’s scheme began in at least 2004 and continues until October 2009, despite being advised by staff about the improper billing and the execution of a search warrant at his medical group in November 2006. In his plea agreement, Justice acknowledges that the public and private health insurance companies suffered losses of between $400,000 and $1 million.

Each count of health care fraud carries a statutory maximum sentence of 10 years in federal prison.

This case is the product of a joint investigation by the Federal Bureau of Investigation, the U.S. Department of Health & Human Services - Office of Inspector General, IRS-Criminal Investigation, and the Department of Defense - Office of Inspector General.

CONTACT: Assistant United States Attorney Jeannie M. Joseph (714) 338-3576

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