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Three found guilty of defrauding Medicare by profiting from clinics

Compliance Monitor, April 14, 2004

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Raul Sanchez DeVarona was sentenced to 15 months in prison and fined $2.4 million following his guilty plea last October to the charge of conspiracy to defraud the Medicare program, according to the U.S. Attorney in the northern district of Ohio on April 8.

DeVarona, an attorney in Coral Gables, FL, testified for the government March 30 in a two-week trial, which resulted in guilty verdicts for two co-conspirators in a scheme to defraud the government.

Richard B. White had 14 guilty verdicts brought against him for Medicare fraud, money laundering, and wire fraud. A second defendant, Michael A. Suhadolnik, was convicted on one count of wire fraud at the same trial.

DeVarona, White, and Suhadolnik created a network of Medicare provider companies associated with Youngstown Osteopathic Hospital. Designed by White, the network was supposed to benefit the hospital, but evidence at the trial showed the companies provided a profit to the defendants through inflated costs charged to Medicare.

The scheme involved five clinics in Florida, which were established by White and operated by DeVarona.

As part of the plea agreement, DeVarona agreed to surrender his license to practice law. White and Suhadolnik are scheduled to be sentenced June 29.

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