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Clinic Owner Must Pay $6 Million for Defrauding Federal Program

Dec. 3, 2019, 7:28 PM

The owner of a pair of physical therapy clinics is going to prison for seven years and will have to pay $6 million in restitution for a scheme to defraud a health-care benefit program that covers federal employees.

Rafael Enrique Rodriguez was the owner and operator of 210 Workers LLC, which provided physical therapy and rehabilitation services in San Antonio, Texas, and Salt Lake City, Utah.

A jury convicted him in June on six counts of health-care fraud, five counts of wire fraud, and one count of aggravated identity theft, the U.S. Attorney’s office in the Western District of Texas said. Federal prosecutors, who filed a superseding indictment in March 2018, said the scheme involved billing for physical therapy sessions that were not performed by qualified professionals.

Rodriguez was alleged to have billed the program more than $7.5 million and received more than $6 million for fraudulent claims. The claims were filed between 2012 and 2016.

The Department of Labor, which administers the program for federal employees with workers’ compensation claims, applauded the sentencing.

“These fraud detection efforts continue to be a high priority for us,” DOL Division of Federal Employees’ Compensation Director Antonio Rios said in a statement issued by the department’s Dallas office.

In addition to restitution, Rodriguez will be placed on supervised release for three years following the completion of this prison term, which starts Jan. 16.

The case is United States v. Rodriguez, W.D. Tex., No. SA-17-CR-779, sentencing 12/2/19

To contact the reporter on this story: Paul Stinson in Austin, Texas at pstinson@bloomberglaw.com

To contact the editors responsible for this story: Fawn Johnson at fjohnson@bloomberglaw.com; Peggy Aulino at maulino@bloomberglaw.com