Two Doctors Charged with Prescription Drug Fraud
Kachun Clement Yeung, M.D. and Barry N. Odegaard, M.D., both 53, were charged, in separate indictments, by a federal grand jury on Wednesday, March 29, 2006, with illegally distributing narcotic prescription drugs and Medicaid Fraud. The indictments were kept sealed until the two doctors were arrested yesterday.
Edward H. Kubo, Jr., United States Attorney for the District of Hawaii, said Yeung was charged with 30 counts of distribution of a Schedule II controlled substance and Odegaard was charged with ten counts of distribution of a Schedule II controlled substance “outside the course of professional medical practice and not for a legitimate medical purpose,” as a result of long-term undercover investigations. The indictments also charged Yeung with 19 counts of Medicaid Fraud and charged Odegaard with five counts of Medicaid Fraud.
The drug charges against the doctors carry penalties of up to 20 years in federal prison and a $1,000,000 fine. The Medicaid Fraud charges carry penalties of up to ten years imprisonment and a $250,000 fine.
The arrests culminated investigations of Yeung and Odegaard by the Drug Enforcement Administration in partnership with the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Internal Revenue Service, the State of Hawaii Department of Public Safety Narcotics Enforcement Division, the State of Hawaii Department of Commerce & Consumer Affairs Insurance Fraud Investigation Branch, and the Honolulu Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Muehleck.