Nevada Doctor Charged with $95M Scheme Defrauding Medicare Through Unnecessary Wound Care
Stephen Dubin allegedly applied costly allografts to elderly patients, including hospice patients, without medical necessity
A Nevada physician has been charged with a $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts that he and others applied to elderly patients, including vulnerable patients in hospice care.
Stephen Dubin, M.D., 74, of Henderson, Nevada, was indicted by a federal grand jury in the District of Nevada on charges of conspiracy to commit health care fraud and five counts of health care fraud.
The Alleged Scheme
According to court documents, Dubin, a medical doctor and sole owner of Dubin Medical Consultants, Inc. (also known as Wound MD), caused Medicare to be billed over $95 million for expensive amniotic allografts that he procured through illegal kickbacks and bribes. Medicare paid over $54 million based on Dubin’s false and fraudulent claims.
As alleged in the indictment, Dubin received illegal kickbacks, bribes, and rebates from two different allograft distributors. Some of these illegal payments were falsely structured to appear as legitimate “Rebate Agreements” while concealing their true nature. These purported rebates substantially reduced Dubin’s true net cost of acquiring the allografts.
Dubin allegedly submitted claims to Medicare seeking reimbursement for the price listed on sham full-price invoices, instead of the actual price he paid for the allografts. Dubin and others allegedly kept as profit the difference between Medicare’s reimbursement and the price paid for the allografts.
The indictment also alleges that Dubin received illegal kickbacks from one allograft distributor through payments from a pass-through bank account held in the name of a shell company in exchange for purchasing allografts from the distributor.
Induced by these illegal kickbacks, bribes, and rebates, Dubin and his co-conspirators applied allografts without regard to medical necessity, including:
- Applying allografts to infected wounds
- Applying allografts to wounds that were not responding to treatment
- Failing to first attempt, complete, or confirm conservative wound care treatment as required by Medicare
- Applying allografts in quantities that far exceeded the size of wounds
Dubin allegedly selected allografts that would maximize his profit, not based on the patient’s need. To conceal the lack of medical necessity, Dubin falsified patient medical records to make it appear as though the application of allografts was medically reasonable and met Medicare requirements.
Dubin used the proceeds of his alleged offenses to fund a lavish lifestyle, including having multi-million-dollar yachts built for him.
Charges and Penalties
Dubin is charged with conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison for each count.
“Healthcare fraud is not a victimless crime; it steals vital resources from elderly and vulnerable citizens who truly need life-saving treatments,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. “These defendants prioritized personal greed over patient care by weaponizing complex billing codes for advanced wound care products.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texas Doctor Sentenced to 12 Years for Operating Pill Mill That Distributed 3 Million Opioid Pills
Maryam Qayum ran cash-only clinic selling prescriptions to street-level drug dealers for up to $500 each
A Texas physician has been sentenced to 12.5 years in prison for operating her Kingwood medical clinic as an illegal pill mill that issued prescriptions for over 3 million opioid pills.
Maryam Qayum, M.D., 68, of Montgomery County, Texas, owned, operated, and was the sole prescriber at Recare Health Clinic. She operated the clinic as a cash-only pill mill, selling controlled substance prescriptions to street-level drug dealers who were referred to as “providers.”
The Operation
According to court documents, “providers” purchased prescriptions for high-strength, highly addictive opioids oxycodone and hydrocodone. Qayum issued these prescriptions without a legitimate medical purpose, often without ever interacting with the patient.
Between 2022 and 2025, when law enforcement shut down the clinic, Qayum issued prescriptions for more than 3 million opioid pills.
Court documents detail how Recare operated well outside the course of a normal medical practice, including charging more for prescriptions for drugs with higher street value:
- A prescription for oxycodone 30mg cost up to $500
- Hydrocodone prescriptions cost $300
- Staff frequently took “tips” from drug dealers to fast-track their patients and prescriptions
- A note listing the cash price for each prescription was seized when law enforcement executed a search warrant at Recare.
Co-Defendants
In addition to Qayum, four other defendants were previously sentenced:
- Melvin Sampson, 56 — Sentenced to 210 months in prison in June 2026. Sampson was a street-level drug dealer who brought patients to Recare, filled prescriptions, and resold the drugs on the black market.
- Tomi-Ko Bowers, APRN, 71 — Sentenced to 96 months in prison in June 2026. Bowers was a nurse practitioner at Recare.
- Lester Stokes, 38 — Sentenced to 63 months in prison in June 2026. Stokes was Recare’s security guard.
- Jared Williams, RPh, 49 — Sentenced to 42 months in prison in July 2026. Williams was the owner and pharmacist in charge at Surge Rx, which filled illegitimate prescriptions issued by Qayum.
Charges and Plea
In March 2026, Qayum pleaded guilty to conspiracy to unlawfully distribute controlled substances.
Qayum was sentenced to 12.5 years in federal prison.
Philadelphia Home Care Provider Agrees to Pay $1 Million to Settle False Claims Act Allegations
Blessings 4 Ever allegedly used falsified training documents and improperly billed Medicaid for hospitalized patients
A Philadelphia-area in-home care services provider has agreed to pay $1 million to resolve allegations that it submitted false claims to the Medicaid Program using falsified documentation and improperly billed for services provided to hospital inpatients.
Blessings 4 Ever Home Care Agency LLC and V&V Management Solutions LLC agreed to the civil settlement, which resolves claims brought under the False Claims Act.
The Allegations
According to the United States, Blessings 4 Ever submitted or caused to be submitted claims for payment to the Medicaid Program for services provided by personal care attendants (PCAs) using falsified documentation.
From January 2015 to December 2018, Blessings 4 Ever allegedly fabricated or backdated 181 training certificates and personnel documents to falsely certify that PCAs satisfied state training requirements and Medicaid Program requirements to provide services inside beneficiaries’ homes. In falsifying files and using fabricated records, Blessings operated its agency using PCAs who lacked proper documentation to perform the services being billed, resulting in substandard services to consumers.
Additionally, from June 2020 through December 2023, Blessings 4 Ever allegedly improperly billed Medicaid for 1,141 claims for in-home personal care services on days when 209 beneficiaries were hospital inpatients for the entire day receiving medical care payable under Medicare and Medicaid.
“In-home care agencies have a responsibility to ensure that only qualified personnel care for Medicaid beneficiaries in their homes,” said U.S. Attorney David Metcalf for the Eastern District of Pennsylvania. “They must not only properly document the training and qualifications of those providing services for Medicaid reimbursement, but must also ensure that qualified personnel are in fact providing the services billed.”
“HHS-OIG remains dedicated to combating Medicaid fraud by ensuring only qualified and trained individuals take care of the vulnerable populations it serves and that Medicaid is only billed appropriately for services that were actually provided,” said Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General.
Whistleblower Provision
The civil settlement includes the resolution of claims brought by a relator under the qui tam or whistleblower provisions of the False Claims Act. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The case is captioned United States ex rel. Fatima Precia v. Blessings 4 Ever Home Care Agency LLC and V&V Management Solutions LLC.
The relator will receive a 21% share of the federal recovery.
The settlement resolves civil claims and does not constitute an admission of liability by Blessings 4 Ever.
Two New York Ophthalmology Practices Agree to Pay $2.3 Million to Settle Fraud Allegations
Fromer Eye Centers and Floral Park Ophthalmology allegedly billed for unnecessary cranial ultrasounds through kickback arrangement
Two New York ophthalmology practices have agreed to pay a total of $2.3 million to resolve allegations that they submitted false claims to Medicare and Medicaid for medically unnecessary trans-cranial doppler ultrasounds (TCDs) through a kickback arrangement with a third-party testing company.
Mark D. Fromer, P.C., doing business as Fromer Eye Centers, and Floral Park Ophthalmology P.C. agreed to the settlements, which resolve claims under the False Claims Act. The Estate of Mark Fromer, the former owner of Fromer Eye Centers, also joined in the settlement.
The Allegations
According to the United States, the settling practices knowingly submitted, and caused the submission of, false claims to Medicare and, with respect to Fromer Eye, Medicaid for medically unnecessary TCDs. The practices performed TCDs on thousands of patients and billed Medicare and Medicaid hundreds of dollars per test.
Before patients received test results, the practices and the third-party testing company allegedly identified patients as having received a serious diagnosis that could qualify for reimbursement. However, nearly all patients who received TCDs never had that diagnosis, and it was not reflected in the patient’s medical history or in the TCD results.
In addition, Floral Park Ophthalmology allegedly received remuneration paid by the third-party testing company to induce the practice to refer its Medicare and Medicaid patients to the testing provider for TCDs.
As a result of the scheme, the United States alleged that the settling practices submitted false claims for TCDs that were medically unnecessary, premised on false diagnoses, and resulted from violations of the Anti-Kickback Statute and the Stark Law.
Settlement Terms
Fromer Eye Centers and the Estate of Mark Fromer will pay $1,800,000, and Floral Park Ophthalmology will pay $500,000. Of the total settlement amounts, $384,000 will be paid to the State of New York for its share of Medicaid.
Both practices have agreed to cooperate with the Justice Department’s ongoing investigations of other participants in the alleged scheme.
Whistleblower Provision
The settlements resolved claims in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States and share in a portion of the recovery. The whistleblower will receive approximately $132,000 in connection with the settlement with Fromer Eye Centers.
“The integrity of healthcare decision-making depends on sound medical advice that is free from undue influence of illegal kickbacks and other improper arrangements,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
“Medical service providers who place profit above patients not only compromise the integrity of our health care system, but patients’ care,” stated U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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