Former Business Manager Sentenced to Prison for Fraud
United States Attorney Deborah R. Gilg announced that Mark L. Koehler of Pilger, Nebraska, was sentenced today to 36 months in prison by United States District Judge John M. Gerrard for healthcare fraud and bank fraud. Koehler received a sentence of 36 months for the healthcare fraud conviction and a concurrent sentence of 36 months for the bank fraud conviction. In addition to the prison sentence, Koehler is required to serve a total of five years of supervised release upon his release, pay restitution totaling $1,814,154.00, and pay a $200 special assessment.
Koehler was the business manager for Heartland Physical Therapy, which provided physical therapy services to its clients. Physical therapy is a medical benefit which is covered by health care benefit programs including Medicare, Nebraska Medicaid, and numerous private insurance plans. As the business manager for Heartland Physical Therapy, it was Koehler’s responsibility to submit health insurance claims to Medicare, Nebraska Medicaid, and to private insurance companies. It was also his responsibility to handle the banking, bill paying, and other bookkeeping and accounting duties for Heartland. From January of 2007, through January of 2010, Koehler submitted health insurance claims for physical therapy and other services which he knew had not been provided. Koehler was ordered to pay restitution to Medicare, Nebraska Medicaid, and to various private insurance companies totaling $1,314,154.00.
Koehler also administered Heartland’s participation in a Business Manager Program with BankFirst in Norfolk, Nebraska, whose deposits were insured by the Federal Deposit Insurance Corporation. Under this program, Koehler, made daily representations to the bank regarding Heartland’s accounts receivable. Based on the inflated amounts reported by Koehler, the bank then advanced approximately $500,000.00 to Heartland for operating purposes. As part of his sentence, Koehler was ordered to repay this amount to the bank.
This case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services.