Cheshire Dentist Reaches Settlement in Medicaid Fraud Case

A Cheshire dentist has reached a settlement agreement with the state to resolve civil fraud allegations and claims stemming from an illegal Medicaid dental billing scheme, Attorney General George Jepsen said on Monday.

David Wu, of Cheshire, and his companies, Arbor Dental Association LLC and Alpha Dental Group PC; Paul Anusavice of North Grafton, Mass.; and John Gallagher of Manchester, Mass. were among 28 individuals, dental practices and corporations named in a civil lawsuit filed by the state in May 2012 that alleged participation in an elaborate and illegal scheme that resulted in the submission of fraudulent Medicaid dental claims over two years in violation of the Connecticut False Claims Act and the Connecticut Unfair Trade Practices Act.

“False or fraudulent claims to our Medicaid programs will not be tolerated,” Jepsen said in a statement. “The settlement with Dr. Wu provides restitution to the Connecticut Medical Assistance Program and bars Dr. Wu from participating in our Medicaid program for one year. The additional settlements with Mr. Anusavice and Mr. Gallagher permanently prohibit them from taking part in our state Medicaid program or in other programs administered by the Department of Social Services. I appreciate the continued coordination and partnership with our client agency and our law enforcement partners in this ongoing case.”

Under the terms of his settlement agreement, Wu will pay $100,000 into the Connecticut Medical Assistance Program and forfeit any right or legal interest in an additional $179,286 in Medicaid payments that had been suspended and held by the state Department of Social Services during the pendency of the investigation and litigation.

Wu will be suspended and excluded from participation in the Connecticut Medical Assistance Program and any other federal health care program for one year.

In consideration of the foregoing payment and suspension, claims previously pending against Wu, Arbor Dental Association LLC and Alpha Dental Group PC have been withdrawn in the state’s civil lawsuit, according to Jepsen.

According to the settlement agreement, Wu denied liability of wrongdoing.