September 27. 2013
Department of Justice
United States Attorney William C. Killian Eastern District of Tennessee
Cleveland Doctor Indicted For Fraud And Money Laundering
CHATTANOOGA, Tenn. – On Sept. 24, 2013, a federal grand jury in Chattanooga returned a 35-count indictment against Dr. Raymond Sean Brown, 44, of McDonald, Tenn., for wire fraud, mail fraud, health care fraud and money laundering. Brown’s initial appearance and arraignment is scheduled for 2:00 p.m., Oct. 1, 2013, before U.S. Magistrate Judge Susan K. Lee, U.S. District Court, Chattanooga.
The indictment alleges that from May 2008 until December 2012, Brown fraudulently billed Medicare for Botox injections he did not give and received $7,482,968 in reimbursement from Medicare for these injections. Between 2008 and 2012, Brown allegedly purchased only 254 vials of non-FDA approved Botox, purchased no FDA approved Botox, and billed Medicare for 17,766 vials. Brown allegedly submitted claims for reimbursement electronically and received payment by checks mailed to his office. According to the indictment, the money received from Medicare for the fraudulent claims was deposited into an Athens Federal Community Bank account from which Brown made a transfer of $35,000 to a Tennessee Valley Federal Credit Union account. Brown allegedly also made payments of $58,519 and $78,851 to two different car dealerships from the Tennessee Valley Federal Credit Union account.
If convicted, Brown faces a term of up to 20 years in prison for each count of wire and mail fraud and up to 10 years in prison for each count of health care fraud and money laundering. Each count also provides for a fine of up to $250,000 and a supervised release term of up to three years. The indictment sets out forfeiture allegations which indicate that, if convicted, Brown may forfeit his interest in the $186,091 in the Tennessee Valley Federal Credit Union account and the $6,579,517 in the Athens Federal Community Bank account. He may also be subject to a money judgment of not less than $7,400,000 if convicted.
This indictment is the result of an investigation by the U.S. Food and Drug Administration- Office of Criminal Investigations and U.S. Department of Health and Human Services- Office of Inspector General. Assistant U.S. Attorney Terra L. Bay will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.