News and Press Releases

FOR IMMEDIATE RELEASE:

FRIDAY - December 10, 2010

FATHER SENTENCED FOR HIS PART IN HEALTH CARE FRAUD

DAUGHTER TO BE SENTENCED NEXT WEEK

WILMINGTON - United States Attorney George E.B. Holding announced that in federal court on December 8, 2010, Senior United States District Judge James C. Fox sentenced ROY L. CREASY, 75, of Wilmington, North Carolina, to 3 years, home detention with electronic monitoring 3 years, $40,000 fine, $1,000,000.00 restitution .

A Federal Grand Jury returned a Superseding Criminal Indictment on January 6, 2010. On June 9, 2010, CREASY pled guilty to conspiring to commit health care fraud, in violation of Title 18, United States Code, Section 371.

According to the Indictment, CREASY, a licensed chiropractor, owned and operated Atlantic Health Clinic, P.A., a chiropractic clinic that, in 1987, became integrated, providing medical and chiropractic care to Medicaid and Medicare patients, among others. In 2005, CREASY retired but still oversaw the clinic’s daily activities, along with his daughter, Tamala Creasy Newton. In addition, CREASY owned and, with Newton, operated Delco Health Clinic, Lake Waccamaw Medical Clinic and Yaupon Medical Clinic. From approximately November, 2004, to January, 2010, the defendants devised a scheme to defraud Medicaid and Medicare by falsely billing for medical procedures that were never performed, for services on days when the clinics were not open, for physician services that were never rendered and for altering previously paid claims by inserting a different year and resubmitting the claim for reimbursement.

Newton is scheduled to be sentenced on December 13, 2010.

Investigation of this case was conducted by the North Carolina Attorney General’s Office, Medicaid Fraud Investigations; United States Department of Health and Human Service - Office of Inspector General/Office of Investigations; and the United States Postal Service. Assistant United States Attorney Yvonne Watford-McKinney represented the government.

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

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