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Update

The defendant, Josephine Adams, was acquitted of all of the charges alleged in the indictment listed in this press release.

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1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Fawn E. Thomas, Public Affairs Specialist

November 17, 2011
FOR IMMEDIATE RELEASE

 

Wife of W.Va. Doctor Convicted of
Obstructing Health Care Fraud Investigation

WHEELING, WEST VIRGINIA — The wife of a Parkersburg, West Virginia, doctor was convicted today of conspiring with her husband to obstruct justice by hiding millions of dollars in health care fraud proceeds. United States Attorney William J. Ihlenfeld, II, announced that JOSEPHINE A. ADAMS, 49 years old and formerly of Parkersburg, was convicted today by a Wheeling jury on sixteen felony counts involving allegations that she obstructed a health care fraud investigation and an official judicial proceeding.

The trial lasted four days and concluded on Thursday morning after the jury had deliberated for just under two hours. Chief Judge John Preston Bailey presided over the trial.

The jury found that ADAMS had assisted her husband in the laundering of nearly $4 million dollars of health care fraud proceeds. The evidence presented showed that the fraud proceeds were first deposited into accounts in West Virginia and then were moved into accounts around the United States before being placed into foreign bank accounts in Canada, China, and the Philippines. ADAMS was shown to have opened accounts in those countries, and also to have opened a shell corporation in the British Virgin Islands in an attempt to hide the money. Large wire transfers were made from accounts controlled by her husband to accounts that ADAMS controlled, many of which were with HSBC Bank.

ADAMS’ husband, Barton Joseph Adams, a Doctor of Osteopathic medicine who owned and operated the Interventional Pain Management medical office in Vienna, West Virginia, is presently under indictment for similar charges and is in custody pending trial.

“Anyone who steals money from our healthcare system should expect to be held accountable, and the jury in this case did just that when it convicted Josephine Adams,” said USA Ihlenfeld. “The defendant enjoyed a luxurious lifestyle and did so on the backs of American taxpayers. She took trips around the world, stayed in fancy hotels, and had plans to retire overseas until the whole scheme collapsed. I commend the agents for all of the hard work that they have done, and continue to do, as the investigation is ongoing.”

“Today’s verdict is yet another victory for the honest taxpayer,” said Thomas Jankowksi Special Agent in Charge, IRS-Criminal Investigation, Pittsburgh Field Office. “This verdict is a crystal clear message that law abiding citizens expect the government to hold responsible those who intentionally violate our nation’s laws.”

JOSEPHINE ADAMS is free pending sentencing but faces up to 20 years in prison on each of the convictions for obstructing an official investigation, up to 10 years for each conviction of obstructing a judicial proceeding, and up to 5 years for each of the conspiracy convictions. She also faces a fine of $250,000 on each conviction.

United States Attorney Ihlenfeld and Assistant United States Attorney Michael D. Stein served as trial counsel. The case was investigated by the Internal Revenue Service-Criminal Investigation Division and the Office of Inspector General-Department of Health and Human Services.