Press Releases
MEDICAID FRAUD SENDS CEDAR RAPIDS CHIROPRACTOR
TO PRISON FOR OVER SEVEN YEARS
Stealing Minors’ Identities Doubles Sentence
October 8, 2009
Contact: Ian K. Thornhill
United States Attorney Matt M. Dummermuth announced that a chiropractor who filed false Medicaid claims using the stolen identities of minors was sentenced today to more than seven years in federal prison.
DOUGLAS P. DVORAK, 46 from Cedar Rapids, Iowa, received the prison term after an April 9, 2009, jury verdict finding him guilty of 22 counts of mail fraud, 11 counts of aggravated identity theft, and 6 counts of money laundering.
The evidence at trial showed that, between late 2005 and early 2007, DVORAK defrauded the Medicaid health insurance program by submitting false Medicaid claims for chiropractic services he never provided. Medicaid is a government program designed to help individuals and families with low incomes and resources. DVORAK used the identities of over 30 under-aged Medicaid beneficiaries in executing this scheme to defraud. DVORAK also engaged in financial transactions with the proceeds of his fraud that were designed to conceal the location and control of these proceeds. Evidence presented at the sentencing hearing established DVORAK intended to defraud Medicaid out of over $120,000.
DVORAK was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. DVORAK was sentenced to 85 months’ imprisonment. A total of thirty-seven months of this sentence was imposed for the mail fraud and money laundering convictions. An additional 48 months’ imprisonment was imposed for the aggravated identity theft convictions. A special assessment of $3,900 was imposed, and DVORAK was ordered to make $71,375.82 in restitution to Iowa Medicaid Enterprise. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
DVORAK was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Ian K. Thornhill and was investigated by the United States Department of Health and Human Services - Office of Inspector General - and the Internal Revenue Service.
