Clinton Township Doctor Charged in Health Care Fraud, Drug Distribution Scheme

A Clinton Township physician has joined the growing list of Metro Detroit health care workers charged in a “large-scale health care fraud and drug distribution scheme,” according to the U.S. Attorney’s Office.

Richard Utarnachitt, 71, is one of 13 individuals whose names have been added to the 2011 indictment that charged Canton Pharmacist Babubhai "Bob” Patel with overseeing a massive health care fraud and drug distribution ring at the more than 20 pharmacies he owned and controlled in Metro Detroit.

Drug Enforcement Administration (DEA) agents executed federal search warrants Tuesday at medical offices in Clinton Township and Commerce Township in connection with the investigation.

“Today’s indictments, particularly of the medical professionals are significant,” said Robert L. Corso, Special Agent in Charge of DEA’s Detroit Field Division, in a statement. “It is alleged that these individuals abused their positions of trust and endangered the lives of countless people by illegally distributing opiate painkillers and depressants throughout southeast Michigan.”

“This investigation makes it clear that the DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines.”

The original, 21-count indictment charges that Patel was the owner and controller of approximately 26 Michigan pharmacies, and in this capacity, would offer kickbacks, bribes, and other illegal benefits to physicians who wrote prescriptions for patients with Medicare, Medicaid, and private insurance, according to the U.S. Attorney’s Office.

Patel would then direct that those prescriptions be presented to one of his pharmacies for billing. The U.S. Attorney’s Office alleges that often the prescribed medications were not only medically unnecessary but in many cases never provided to the patients.

Patients were also recruited into the scheme, leading to another reported conspiracy to distribute controlled substances such as Oxycontin, Vicodin and Xanax as a “kickback to the patients for agreeing to enable their insurance cards to be billed for medications purportedly dispensed at the Patel Pharmacies,” according to the U.S. Attorney.

Of the 26 defendants originally charged in the 2011 indictment, six, including Patel and four pharmacists, were convicted at a trial last summer. Patel was sentenced to 17 years’ imprisonment.

Fifteen additional defendants, including six pharmacists and two doctors, have also pleaded guilty in the original indictment. The five remaining defendants whose charges were renewed in the superseding indictment are scheduled for trial on June 10.

“Taxpayers fund Medicare and Medicaid to provide health care for needy citizens,” said U.S. Attorney Barbara L. McQuade in a statement. “We hope that doctors and pharmacists will take note that if they exploit these programs for personal profit, they will face serious consequences.”

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. 

Source: FBI Press Release