April 25, 2011 5:17 PM

http://www.enctoday.com/news/new-96820-nbsj-bern-health.html

A New Bern pain management physician pled guilty to health care fraud and money laundering Monday in U.S. District Court.

Dr. Michael K. Nunn, doing business as Community Wellness Center (CWP) in New Bern at McCarthy Boulevard and also in Winterville and Morehead City, was sentenced by U.S. District Judge Terrence W. Boyle. The court fined the corporation $700,000 ordered Nunn to pay restitution of $297,215 to the U.S. Department of Health and Human Services and the Veteran’s Administration.

Nunn was placed on four years of probation.

Nunn said Monday afternoon that the plea agreement “was a sham.” He said he was forced into a corner to make the plea. “The accusations are not true,” he said.

He said he decided to accept the plea and try to justify it.

According to a news release from the U.S. Department of Justice, from May 2003 to March 2004, CWC “developed and executed a scheme to fraud the Medicare and VA Fee-Basis program. During this time, CWC falsely billed Medicare for the following procedures: ultrasound services that were not provided, electrical stimulation services that were performed by staff whom were unqualified to perform the services, physical therapy administered by persons unqualified to administer the therapy, whirlpool services that were not provided, and physician’s services when the physician was not in the office at the time.”

The release also says, “The Criminal Information further alleges that Medicare was billed for ultrasound rather than electrical stimulation because Medicare did not reimburse for electrical stimulation and for office visits when the beneficiaries did not appear for the appointment. Also employees were instructed to alter patient encounter forms to falsely indicate that services had been provided when such services had not been provided and then to bill Medicare for the unprovided services. Additionally, double bills were submitted to the VA for rendering the same services for the same patients on the same dates.”

The investigation was conducted by the Department of Health and Human Services, Office of Inspector General; the Veteran’s Administration; and the Internal Revenue Service.”