Doctors Bilked in Insurance Scam
The U.S. Department of Justice has frozen over $500 million in bank and investment accounts that department officials say represent booty from a fraudulent tax avoidance scheme. The department issued a temporary restraining order against xélan Inc. and related entities. Federal officials alleged that the company, based in San Diego, advised thousands of doctors and other medical professionals to place their income in various tax schemes involving supposed “supplemental insurance products” or improper charitable deductions. The Internal Revenue Service estimates that the 4,000 doctors who participated may owe as much as $420 million in taxes, interest, and penalties. A temporary receiver has been named to guard assets and handle claims; doctors who want to file a claim or get information on the case should contact the receiver, William “Biff” Leonard, at biffer@sprynet.com or by calling 702-262-9322.
Group Pays $1.8 Million Settlement
Temple University Physicians has agreed to pay almost $1.9 million to settle civil charges arising from an investigation into the group's Medicare Part B billing practices. HHS audited Medicare Part B claims submitted by the group between July 1995 and July 1996 and concluded that the group lacked sufficient documentation to support some claims, and that some of the claims represented a greater level of service than was actually provided. “Through this settlement we are protecting the integrity of the Medicare system on which our senior citizens depend for their critical health care coverage,” Patrick Meehan, U.S. Attorney for the Eastern District of Pennsylvania, said in a statement on behalf of HHS. Temple University Physicians denies both the government's allegations and any liability relating to them.