Stephen Timothy Wells, owner of Oahu Spine and Rehab, a physical therapy clinic with locations in Kailua and Aiea, has been sentenced to nine months in federal prison for health care fraud. Acting United States Attorney Kenneth M. Sorenson announced that U.S. District Judge Jill A. Otake handed down the sentence, which also includes three years of supervised release and restitution payments totaling $392,157.20 to TRICARE and Medicare.
Wells pleaded guilty to the charge on September 27, 2024. According to his plea agreement, from July 2013 through early 2020, he submitted false claims for payment for physical therapy services to TRICARE and Medicare. He used unqualified individuals such as massage therapists, athletic trainers, personal trainers, and others without professional licenses or certifications to provide services to patients. Despite knowing these individuals were unauthorized providers, Wells billed the programs as if licensed practitioners had provided the services.
“Tens of billions of dollars are lost to health care fraud each year, robbing Americans of vitally needed quality health services,” said Acting U.S. Attorney Ken Sorenson. “Over a nearly seven-year period, the defendant endeavored to bilk our nation’s taxpayer-funded TRICARE and Medicare programs out of as much money as possible. He diverted scarce program dollars from military service members and their families, as well as elderly and disabled Americans—some the most deserving and physically and financially vulnerable members of our society. Today’s sentence should serve as a warning to those who attempt to cheat our taxpayer funded insurance programs: you will be caught and when you are, a prison sentence awaits.”
The investigation was conducted by several agencies including the Defense Criminal Investigative Service, the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigation, and the U.S. Department of Veteran Affairs Office of Inspector General.
Assistant U.S. Attorneys Mohammad Khatib and Rebecca Perlmutter prosecuted the case.