The U.S. government is seeking more than $17 million in forfeitures from the seven defendants found guilty in April in the Forest Park medical fraud trial.
The money represents what prosecutors called “the proceeds derived from or property involved in” crimes committed by the seven individuals.
Together with an earlier judgment against a surgeon who was one of the founders of Forest Park Medical Center, the latest government forfeiture requests, if granted by the court, would raise to more than $25 million the amount the United States hopes to recover as a result of its prosecution of what it called a widespread bribery and kickback scheme perpetrated by the physician-owned North Dallas surgical hospital.
Government investigators concluded that Forest Park illegally raked in $200 million from 2009 through 2012 by bribing surgeons and others to steer well-insured patients to the hospital, then billing the patients’ insurance companies at far higher rates than what other, established hospitals would have charged.
“Patients trust medical professionals to make healthcare decisions based on the patients’ best interests. Instead, these defendants allowed their greed to dictate their recommendations as to how and where patients were treated,” said U.S. Attorney Erin Nealy Cox.
Nine people affiliated with Forest Park were tried in U.S. District Court in Dallas earlier this year. One defendant was acquitted. Jurors were unable to reach a unanimous verdict regarding another. She has since entered into a plea bargain to avoid retrial.
The remaining seven defendants, including four physicians and a $1 million-a-year hospital executive, all profited illegally from their participation in Forest Park’s scam, according to government forfeiture motions.
Prosecutors filed six motions for entry of a forfeiture judgement last week. One such motion was filed shortly after the guilty verdicts were returned in April. All are pending before U.S. District Judge Jack Zouhary, who presided over the seven-week trial. Criminal sentencing of the seven convicted defendants is also pending.
The subjects of the forfeiture actions, and the amounts being sought, are:
Dr. Michael Rimlawi, a spinal surgeon, from whom the government is seeking $8.13 million. For part of that amount, the government contends, Rimlawi is jointly and severally liable with his onetime business his partner, Dr. Douglas Won. Rimlawi was found guilty on three of four counts, including conspiracy and two counts of receiving kickbacks. He faces up to 15 years in federal prison.
Mac Burt, one of Forest Park’s two top administrators, from whom the government is seeking $4.56 million. Burt was found guilty on 10 of 12 counts, including one count of conspiracy, two counts of paying kickbacks, six counts of commercial bribery in violation of the U.S. Travel Act, and one count of money laundering. He and faces up to 65 years in prison.
Dr. Shawn Henry, a spinal surgeon and investor in Forest Park, from whom the government is seeking $840,000. Henry was found guilty on three of three counts, including conspiracy, commercial bribery, and money laundering, and faces up to 30 years in prison.
Jackson Jacob, the owner of a company through which Forest Park routed payments to surgeons and others. The government is seeking $526,102 from Jacob, who was found guilty on four of 14 counts, including conspiracy and three counts of paying or receiving kickbacks. He faces up to 20 years in prison.
Iris Forrest, an occupational health nurse found guilty of taking kickbacks to recruit patients to Forest Park. The government is seeking $463,600 from Ms. Forrest, who was found guilty of conspiracy and receiving kickbacks. She faces up to 10 years in prison.
Dr. Mike Shah, a pain management physician, from whom the government is seeking $67,850. Shah was found guilty on four of four counts, including conspiracy, two counts of receiving kickbacks, and one count of commercial bribery. He faces up to 20 years in prison.
Prosecutors previously filed a forfeiture motion against Won, Rimlawi’s former business partner, who sought protection under Chapter 7 of the bankruptcy code during the Forest Park trial. The government is seeking $9.12 million from Won, a portion of which Rimlawi would be jointly and severally liable for. Won was found guilty on one of two counts, conspiracy, and faces up to 5 years in prison.
These forfeiture judgments, if imposed by the court, would be in addition to an $8.25 million judgment Judge Zouhary ordered in April against Dr. Wade Barker, a weight-loss surgeon who was one Forest Park’s founders.
Barker was originally indicted in the Forest Park case but struck a deal with the government before trial, pleading guilty to conspiracy to pay and receive bribes and kickbacks; and to aiding and abetting commercial bribery. Under his plea agreement, Barker agreed to testify against his fellow defendants, and he did not contest the forfeiture judgment against him. Like others who pleaded guilty or were convicted at trial, Barker awaits sentencing before Zouhary.
In addition to any forfeitures ordered by the court, the Forest Park defendants may be required to pay restitution to the insurance companies identified as victims of the hospital’s bribery and kickback scam. Such restitution, government authorities say, could far exceed the amount sought in forfeiture.