California Chiropractor Who Assisted in Helping Fraud Prosecutors Receives State Settlement For Board of Chiropractic Harrassment

California Governor Jerry Brown approves $600,000 settlement in chiropractor board firing

The former executive director of the state Board of Chiropractic Examiners alleged that she was harassed and fired for helping prosecutors investigate fraud in the industry.
By Patrick McGreevy, Los Angeles Times
July 27, 2011

Reporting from Sacramento -- The former executive director of the state Board of Chiropractic Examiners will receive $600,000 to settle a claim that she was harassed and fired for helping prosecutors investigate fraud in the industry.

Gov. Jerry Brown on Tuesday signed a bill authorizing the settlement, under which the state did not admit any wrongdoing.

Catherine Hayes' lawsuit alleged that board members tried to intimidate her into not cooperating with a 2006 probe by the San Joaquin County district attorney's office into whether several chiropractors had engaged in insurance fraud. Eventually, she said, they retaliated by firing her.

Hayes' allegations were an embarrassment to the administration of then-Gov. Arnold Schwarzenegger. Among those she accused of retaliation was Richard Tyler, the board chairman and a friend of Schwarzenegger who at one time served as his personal chiropractor. Also named in the suit was board member Francesco Columbu, a chiropractor and two-time Mr. Olympia bodybuilder — as well as the best man at the governor's wedding to Maria Shriver.

Hayes' lawsuit alleged that the former governor's friends ran the board with more interest in protecting the chiropractic profession than consumers.

"In light of all the facts, it was a just settlement," said Anthony Poidmore, an attorney for Hayes.

Board members have denied the allegations.

"We're very pleased that this was settled," Executive Officer Robert Puleo said Tuesday, "and we look forward to moving forward on the board's consumer protection mission."

The Legislature approved the Hayes settlement after board members voiced concern that a similar lawsuit had resulted in a big jury award.

In that case, former employee Carole Arbuckle was awarded $1.25 million in damages and $800,000 in legal fees after a jury found that the board's administrators in 2001 had retaliated against her for reporting that a board member had allowed a chiropractic license to lapse.

Brown signed 11 other bills Tuesday, including a measure banning the sale of animals on street corners in hopes of reducing the number of puppy mills in California. SB 917 by Sen. Ted Lieu (D-Torrance) also sets tougher penalties for those convicted of animal abuse or cruelty, allowing a maximum jail sentence of one year in cruelty cases and a fine of up to $20,000.

The governor also signed into law a measure that designates any building used for dog-fighting or cockfighting to be a public nuisance, which makes it easier to evict the tenant. SB 426 is by Sen. Ron Calderon (D-Montebello).

patrick.mcgreevy@latimes.com

Copyright © 2011, Los Angeles Times



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Feds: Fake Philadelphia chiropractor made $1.1 million in false claims

From http://www.philly.com/
The Philadelphia Inquirer

July 27, 2011
Staff Report, Inquirer Staff Writer

A man operating a Center City holistic healing clinic has been indicted on charges of not only tricking patients into believing he was a chiropractor, but also submitting claims for treatments he never carried out.

Tahib Smith Ali, 34, is charged with 150 counts of health care fraud, filing false medical statements, and aggravated identity theft.

Ali, of Northeast Philadelphia, turned himself into federal authorities this morning and was ordered to surrender his passport and a hunting rifle at a hearing before U.S. Magistrate Timothy Rice.

Rice released Ali on a recognizance bond of $50,000 and continued the case until next week, when Ali said his attorney will be available.

Prosecutors say Ali submitted bills to Independence Blue Cross between 2009 and 2010 as he was posing as a chiropractor and physical therapist.

He then submitted claims, using the name of a licensed chiropractor who once owned the clinic on the posh 300 block of South 17th Street, the indictment says. But Ali, who was not licensed, had purchased the clinic in December, 2008.

The indictment alleges that starting in January, 2009, Ali began billing for services that were either not provided, or for patient visits that never occurred.

Prosecutors say he presented himself to patients as a chiropractor, going so far as to wear scrubs, while performing spinal manipulations and muscle stretches.

In all, the indictment said, he submitted more than $1 million in claims. Authorities say he went so far as to hire a real chiropractor. He would then submit bills in his own name for work carried out by the real chiropractor, according to the indictment.

Ali faces a mandatory sentence of 2 years in prison for each aggravated identity theft count, a statutory maximum of 10 years for each health care fraud count, and five years for each count false statements count, plus up to $25 million in fines.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney M. Beth Leahy.


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Nathan Gorenstein contributed to this article.
To view this article online, go to:  http://articles.philly.com/2011-07-27/news/29820986_1_chiropractor-health-care-fraud-identity-theft