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Texas psychiatrist convicted of fraud, receiving kickbacks for wheelchairs

Compliance Monitor, April 7, 2004

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Psychiatrist Lewis Gottlieb was convicted April 1 for participating in a scheme to defraud Medicare and Medicaid of $16 million by approving durable medical equipment (DME)-mostly motorized wheelchairs-to beneficiaries in return for kickbacks from the wheelchair suppliers.

According to the U.S. attorney's office for the Southern District of Texas, the conviction followed his guilty plea of conspiracy to commit healthcare fraud, executing a healthcare fraud scheme, and receiving kickbacks between October 2001 and May 2003. Gottlieb was indicted in September 2003.

Gottlieb faces a maximum penalty of 10 years in federal prison for the healthcare fraud conviction, five years imprisonment for the illegal kickback conviction, and another five years imprisonment for the conspiracy conviction. Each offense carries a fine.

U.S. District Judge Lee Rosenthal gave an order that $1.6 million held in a bank account in Gottlieb's name be forfeited to the United States.

In addition to receiving kickbacks, Gottlieb admitted he required each Medicare/Medicaid beneficiary brought to his office by DME providers to sign a form indicating that they needed psychiatric services, and gave permission for him to bill Medicare on their behalf.

Gottlieb submitted these fraudulent claims to Medicare knowing the beneficiary did not need psychiatric services. If the beneficiary refused, Gottlieb would not sign the form authorizing the motorized wheelchair.

To read the entire press release, click here.

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