Cedar Park Patient Recruiter Indicted In Medicaid Kickback Scheme

CEDAR PARK, TX — A local patient recruiter and a pair of Austin psychologists are facing criminal charges after being accused by federal investigators of a Medicaid kickback scheme centered on children under state protective custody, officials said Thursday.

Glen Elwood McKenzie Jr., 67, a patient recruiter of Cedar Park, faces one count of conspiracy to violate the federal anti-kickback law and five counts of receiving illegal kickbacks, according to a news release by the U.S. Attorney's Office for the Western District of Texas. Additionally, Dr. William Joseph Dubin, 72, and his son Dr. David Fox Dubin, 32, who operate Psychologist A.R.T.S. PC in Northwest Austin, each face 21 various charges, including conspiracy and health care fraud, according to the U.S. Attorney's office.

The U.S. Attorney's Office categorized the case as being "...part of the largest coordinated Health Care Fraud enforcement action to date." In their press release, officials outlined the various charges against the father-and-son psychologists:

• One count of conspiracy to violate the federal anti-kickback law;
• five counts of paying illegal kickbacks;
• one count of conspiracy to commit health care fraud;
• seven counts of health care fraud and aiding and abetting health care fraud;
• six counts of aggravated identity theft, and aiding and abetting aggravated identity theft.

For his part, McKenzie, Jr., is charged with one count of conspiracy to violate the federal anti-kickback law and five counts of receiving illegal kickbacks, officials said.

According to the indictment, the Dubins directed students and interns—both unlicensed and unsupervised—to conduct psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. The students and interns then prepared psychological evaluation reports, which included the student’s diagnoses of the psychological condition of each child and youth, the student’s impressions of the risk of each child and youth for future obstructive and disruptive behaviors, and the student’s recommendations for future treatment, according to prosecutors.

The Dubins then billed (or directed others to do so) Medicaid that falsely claimed that the elder Dubin had performed the work actually conducted by the unlicensed students and interns, officials allege. Medicaid rules expressly prohibit psychologists from billing for services performed by students and interns, officials noted. The same set of rules allows a psychologist to bill, at a reduced fee, for services provided by a supervised and licensed psychological associate. The reduced fee is 70 percent of the fee paid for work performed by the licensed psychologist, officials explained.

The indictment further alleges the Dubins also directed unsupervised licensed psychological associates to prepare psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie. Again, Medicaid was billed under false claims the elder Dubin had performed the evaluations actually done by associates.

"This resulted in a larger payment from Medicaid and a larger percentage of profit for Psychological A.R.T.S., Dr. William Dubin and Dr. David Dubin," officials said.

Each count related to illegal kickbacks calls for up to five years in federal prison, officials said, each count related to Health Care Fraud is subject to a maximum ten years in federal prison and, and each count related to aggravated identity theft could yield up to two years in federal prison.

The U.S. Attorney's Office said the indictment resulted from a multi-agency investigation conducted by FBI special agents and investigators with the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley is prosecuting this case on behalf of the government.

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