Corporate Compliance

Kentucky black lung advocate convicted on fraud charges

Compliance Monitor, August 31, 2005

Ten years in prison and up to $250,000 in fines. That's the maximum punishment faced by the president of the Kentucky Black Lung Association and her husband who were convicted on Medicare fraud charges last Thursday.

The couple will be sentenced on Nov. 21, according to the Associated Press (AP).

A jury convicted Carolyn Sue "Susie" Davis and her husband Otis Davis on 13 counts of healthcare fraud and obstructing an investigation in connection with a scheme to funnel Medicare patients to a medical supply store headed by Otis Davis.

The state alleged that Susie Davis encouraged coal miners to visit Dr. Raghu Sandaram, of Montgomery, Al for testing. Dr. Sundaram would then refer patients to get oxygen from J&J Medical, Otis Davis' medical supply store. Assistant U.S. Attorney Patrick Molloy told the court Otis Davis was a figurehead at J&J Medical, and that the company was really run by Susie Davis.

Dr. Sundaram also faced charges in connection with the scheme but was acquitted, according to the AP.

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