Insurance Fraud NEWS
Doctor accused in Montgomery pill mill probe arraigned on new counts
March 26, 2019, Montgomery, AL
Montgomery Dr. Richard Stehl returned to court Tuesday where he was arraigned on 26 new counts, pleading not guilty to drug distribution, health care fraud, and money laundering.
The government alleges Stehl used vague diagnoses as an avenue to prescribe powerful narcotics to patients who had no medical need.
The pill mill was an alleged money maker, according to court documents. In order to get a prescription, patients had to return monthly. Reimbursements from those visits pumped revenue into the practice. Prosecutors allege Stehl filed for reimbursements with Medicare and Blue Cross Blue Shield for complex office visits, which yield a higher monetary return than regular visits, for nearly ten years.
In addition to the eleven counts of drug distribution and health care fraud, he's charged with four counts of money laundering.
Court documents suggest Stehl established a Limited Liability Corporation, or LLC, which he used to purchase the property for his practice and paid rent back to the company from HealthCare on Demand. The indictment shows four payments to the company from HealthCare on Demand for rent, which account for those four charges.
After his business was established, the government says Stehl transferred the ownership to a family member to reportedly disguise the nature of the ownership and control of the funds.
Stehl's legal team told WSFA 12 News they anticipated the additional counts and continue to look forward to their day in court.
The trial is set for June.
Source: WSFA 12