U.S. Department of Justice
Commerce St., 3rd Fl.
Telephone (214) 659-8600
|FOR IMMEDIATE RELEASE||
DECEMBER 14, 2001
White Oak Physician Pleads Guilty in Federal Court
United States Attorney Richard H. Stephens announced today that White Oak, Texas resident, Dr. Norman Q. Seid, age 39, a board-certified/licensed anesthesiologist, pled guilty today before the Honorable United States District Judge John H. McBryde to subscribing to a false income tax return under penalties of perjury. Seid faces a maximum sentence of three years imprisonment and a $100,000 fine. Sentencing has been set for March 29, 2002.
According to papers filed in court, Seid admitted that he willfully signed and filed a joint 1997 federal income tax return that he knew understated his income by $237,107. Part of the omitted income consisted of various amounts of monies he received from fraudulently submitted medical claims made by Dr. Mark Allen Darner, and others. In fact, Seid admitted that he knew those funds were proceeds of an unlawful activity, yet kept them instead of returning them to the rightful owner.
Mark Allen Darner, a licensed chiropractor, was sentenced last month to five years imprisonment and ordered to pay $2,748,881.43 in restitution following his federal mail fraud conviction. Darner admitted that he was involved in a conspiracy with others to defraud patients and various insurance companies by submitting false claims for medical services claimed to have been performed and receiving payment for these services from those insurers. Darner admitted that during this time, he submitted approximately $5.7 million in false medical claims to insurance companies. Of that, approximately $3.2 million was paid by insurance companies on the fraudulent claims. Not only did Darner's scheme defraud insurance companies of millions of dollars, he deprived his patients of the full, honest medical care they thought they were receiving.
The resulting loss to the Internal Revenue Service as a result of Seid's criminal activity is $66,000.
United States Attorney Stephens praised the exemplary investigative work conducted jointly by the Internal Revenue Service, Criminal Investigation; the Federal Bureau of Investigation; the United States Postal Inspection Service; the United States Postal Service, Office of Inspector General; the United States Department of Labor; and the Texas Department of Insurance. The case was prosecuted by Assistant United States Attorney Ronald C.H. Eddins.
# # #