For participating in a plan to falsely charge $112 million for substance misuse services that were never provided or were medically unnecessary, a Florida doctor was sentenced today to 54 months in prison.
In two addiction treatment centres where he served as the medical director, Jose Santeiro, 62, of Miami Lakes, allegedly collaborated with others to fraudulently bill for nearly $112 million in addiction treatment services that were either never provided or medically unnecessary. These facilities included WAR Network LLC (WAR), an associated outpatient treatment programme, and Second Chance Detox LLC, dba Compass Detox (Compass Detox), an inpatient detox and residential facility.
Santeiro and others admitted patients for medically unnecessary detox treatments, the priciest type of therapy the facilities provided, according to court documents and evidence produced during the trial. In order to entice patients to enrol in the programmes, patient recruiters offered bribes. They subsequently provided patients with illegal narcotics to guarantee their admission to Compass Detox for detox.
Santeiro submitted false and fraudulent claims for numerous, medically pointless urine drug tests that were never used in therapy, according to the evidence presented at trial. Santeiro and other individuals subsequently approved the re-admission of a core group of patients who were alternately treated at Compass Detox and WAR in order to fraudulently bill for as much as possible, despite the fact that the patients did not require the pricey treatment for which they were repeatedly admitted.
Santeiro also gave Compass Detox patients a “Comfort Drink” as a sedative to keep them at the facility and encourage their return. The evidence also revealed that others signed electronic medical records using Santeiro’s log-in with his knowledge, giving the impression that Santeiro had administered care when he had not.
Santeiro was found guilty of conspiracy to conduct health care fraud and wire fraud, as well as eight counts of health care fraud, following a 15-day trial in March 2022. Jonathan and Daniel Markovich, two further co-defendants, were found guilty in a prior trial in November 2021 and received sentences of 188 months and 97 months in jail, respectively.
Attorney Richard Waserstein received a 13-month prison term after entering a guilty plea to one count of conspiring to launder money. Another doctor, Drew Lieberman, admitted to conspiring to conduct health care fraud and was given a 13-month prison term. Christopher Garnto was given a 24-month prison term after entering a guilty plea to conspiracy to commit wire fraud and health care fraud.
The announcement was made by the Criminal Division of the Justice Department’s Assistant Attorney General Kenneth A. Polite, Jr., the Criminal Investigative Division of the FBI Assistant Director Luis Quesada, and the Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG).
The matter was looked into by the Broward County Sheriff’s Office, HHS-OIG, and the Miami Field Office of the FBI.
The case was pursued by Senior Litigation Counsel Jim Hayes, Trial Attorneys Jamie de Boer and Andrea Savdie, and the Criminal Division’s Fraud Section.
The Department of Justice’s Sober Homes Initiative, which prosecutes criminals who prey on vulnerable patients seeking treatment for drug and/or alcohol addiction, is led by the National Rapid Response Strike Force, Los Angeles Strike Force, and Miami Strike Force.