Jahani, Peper Indicted By Federal Grand Jury

POSTED: 11:57 am MDT August 9, 2011

UPDATED: 5:20 pm MDT August 9, 2011

http://www.kjct8.com/news/28813347/detail.html?source=gjct

GRAND JUNCTION, Colo. -- Two former western Colorado doctors, Sam Jahani and Eric Peper, were indicted by a federal grand jury on Wednesday, August 3. They're facing charges related to health care fraud, money laundering and dispensing controlled substances in which four cases resulted in death.

According to the U.S. Attorney's Office, Jahani was arrested by federal agents in Texas. Peper has yet to be arrested. Jahani will make an appearance in U.S. District Court in Beaumont, Texas Tuesday afternoon. No court appearance has been set for Peper.

After they appear in their home districts, they will be ordered to appear in U.S. District Court in Colorado.

The indictment alleges that Jahani and Peper did knowingly and willfully execute a scheme to defraud health care benefit programs, namely Medicaid, Medicare, and commercial health care plans.

Jahani operated a medical business called Urgent Care, Inc. He conducted business at locations in Delta, Montrose and Grand Junction.

According the the U.S. Attorney's Office, Jahani and Peper allegedly prescribed controlled substances to patients without determining a sufficient medical necessity for the prescription. They also caused patients to fill prescriptions for controlled substances at various pharmacies, allowing the pharmacies to file claims and obtain reimbursement for those prescriptions from health care benefit programs used by the patients.

As part of the scheme, Jahani and Peper prescribed controlled substances in quantities and dosages that would cause patients to abuse, misuse, and become addicted to the controlled substances. They also allegedly prescribed controlled substances to patients knowing that those patients were addicted to the controlled substances or misusing the controlled substances, as stated in the indictment.

By doing so, they were endangering their patients' lives, and if taken as directed, their prescriptions would be expected to result in accidental fatal overdoses.

As a result of their practices, the indictment alleges that four people died.

“We count on medical doctors to use their training, skill and judgment to provide the best possible care for their patients,” said U.S. Attorney John Walsh. “Our medical system requires doctors to properly bill health care benefit programs, and when they don’t, they can face criminal consequences. Also, when, as in this case, doctors neglect their responsibilities and abuse the authority they are given to prescribe medications in order to make money while risking the health of their patients, we will act to protect the public with aggressive prosecution efforts.”

If convicted, Jahani faces life in federal prison, and up to a $250,000 fine for each of the three-counts of healthcare fraud resulting in death. He's also facing charges for health care fraud, money laundering and more.

Peper faces life imprisonment, and not more than a $250,000 fine for one-count of healthcare fraud resulting in death, if he is convicted. He's also looking at more fines and extended jail time for heath care fraud, money laundering and additional charges.