Former Chief Executive Officer of Health Care Company Sentenced to Two Years Probation for Theft of Government Property

Montgomery, Alabama - On Thursday, May 2, 2019, William “Ed” Henry, 48, of Hartselle, Alabama, was sentenced to two years’ probation for aiding and abetting the theft of government property. He was also ordered to pay a fine of $4,000.00, announced United States Attorney Louis V. Franklin, Sr.

According to court documents, from 2015 through 2017, Henry was an owner of a health care company, MyPractice24, Inc. (MyPractice24). During some of that time, Henry also served as the company’s chief executive officer (CEO). MyPractice24 provided non-face-to-face chronic care management services to Medicare beneficiaries who had two or more chronic conditions. The company did so pursuant to contracts into which it entered with primary care physicians. Under those contracts, the doctors would pay Henry’s company to provide these chronic care management services to the doctors’ patients, the company would provide the services, the doctors would bill Medicare for the services, and then the doctors would pay Henry’s company a share of the reimbursements received from Medicare.

Court documents state that in 2016, Henry entered into an agreement with Dr. Gilberto Sanchez, a Montgomery physician who has subsequently pleaded guilty to drug distribution, health care fraud, and money laundering charges. Under that agreement, MyPractice24 would provide various kickbacks to Dr. Sanchez and his staff in return for the providers at Dr. Sanchez’s practice referring Medicare beneficiaries to MyPractice24 for chronic care management services. Additionally, Henry assisted Dr. Sanchez in paying kickbacks to patients who enrolled in the chronic care management program. Dr. Sanchez paid these kickbacks by systematically waiving copays—copays which Medicare required Dr. Sanchez to collect. Henry was charged with entering into similar agreements with other Alabama physicians, including Dr. Punuru Reddy of Decatur, Alabama and Dr. Nicole Scruggs of Huntsville, Alabama.

Henry’s sentencing hearing followed a January hearing during which Henry pleaded guilty to one count of theft of government property. The count stemmed from Henry’s helping Sanchez and other physicians in obtaining Medicare reimbursements to which the doctors were not entitled.

This case was investigated by the United States Department of Health and Human Services – Office of Inspector General, the Drug Enforcement Administration’s Tactical Diversion Squad, and the Internal Revenue Service’s Criminal Investigation Division. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, and the Opelika, Alabama Police Department assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and Megan A. Kirkpatrick prosecuted the case.