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Missouri chiropractic office's role in disability fraud leads to multiple sentences

LEGAL NEWSLINE

Tuesday, December 24, 2024

Missouri chiropractic office's role in disability fraud leads to multiple sentences

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U. S. Attorney Sayler A. Fleming | U.S. Department of Justice

A Jefferson County, Missouri chiropractic office's involvement in a multi-million dollar disability fraud conspiracy has led to the sentencing of its 25th patient. Donald Furrer, aged 67, was sentenced by U.S. District Judge Stephen R. Clark to one year of probation after repaying nearly $462,000 that he had fraudulently obtained from the Social Security Administration’s Disability Trust Fund and private insurers.

The chiropractors behind PowerMed Inc., Thomas G. Hobbs and Vivian Carbone-Hobbs, are currently serving four-year prison terms for their roles in the scheme. They have been ordered to repay $4.3 million and $16.4 million respectively.

Employees Christina Barrera and Clarissa Pogue also faced sentences; Barrera received 14 months in prison while Pogue was given five years of probation with six months under house arrest.

Several patients involved were employed at Anheuser-Busch or were spouses of other defendants. Sentences varied from one year of probation to a 15-month imprisonment term for Elizabeth Guetersloh, with all required to return funds obtained through fraudulent means.

James Ralston, a former Anheuser-Busch union steward who referred colleagues and coached them on falsifying applications, was sentenced to five years of probation and must repay over $2.1 million.

Hobbs charged significant fees for preparing false disability forms and coaching patients on how to misrepresent their abilities in daily tasks such as lifting or walking. Evidence showed some patients paid up to $13,000 for services related to various disability claims options.

Despite claiming disabilities preventing work or basic life functions, many PowerMed patients engaged in activities like traveling or purchasing new homes using fraudulently acquired funds.

U.S. Attorney Sayler A. Fleming noted that the investigation has resulted in convictions for 31 individuals and recovery of over $6 million for defrauded entities like the Social Security Administration.

Jason Albers from the Social Security Administration Office praised investigators' efforts: “This sentence holds him accountable for his criminal behavior.” FBI Acting Special Agent Greg Heeb added that those lying about disabilities divert resources from genuine cases: “I commend our agents...who successfully unraveled such a large conspiracy.”

The investigation involved collaboration between the Social Security Administration – Office of Inspector General and the FBI, with prosecution led by Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke, and Gwendolyn Carroll.

For suspected fraud involving Disability Insurance Benefits Program contact SSA Office of Inspector General Hotline at: 1-800-269-0271 or visit https://oig.ssa.gov/report/.

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