Former Railroad Employee Sentenced to Two and a Half Years in Federal Prison for Fraudulently Obtaining Disability Benefits
CHICAGO — A suburban Chicago chiropractor has been sentenced to more than a year and a half in federal prison for fraudulently submitting reimbursement claims to private insurers and Medicare for nonexistent treatment.
JOHN KOSLOSKI operated Diagnostic & Therapeutic Rehab in Dolton, Ill. From 2010 to 2017, Kosloski billed the private insurers for services that he purportedly provided to Amtrak employees and their family members, knowing that he was not actively treating them or had never seen them as patients. Kosloski paid cash to the Amtrak employees in exchange for the ability to falsely bill using the employees’ and their family members’ personal information. During the course of his scheme, Kosloski submitted more than 18,000 claims to insurers for services that he knew he did not provide, and he received more than $500,000 in reimbursements for the false claims.
Kosloski, 57, of Beecher, Ill., pleaded guilty last year to one count of health care fraud. U.S. District Chief Judge Rebecca R. Pallmeyer on Monday imposed a 20-month prison term and ordered Kosloski to pay a $25,000 fine and more than $500,000 in restitution to the insurers.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Basil P. Demczak, Special Agent-in-Charge of the Central Region of Amtrak’s Office of Inspector General.
“In a world that has limited funds to pay for health care, insurance providers paid defendant for fraudulent claims that could have been used to pay for necessary medical services,” Assistant U.S. Attorney Kelly M. Greening argued in the government’s sentencing memorandum. “He made the choice to defraud insurers over and over again for eight years, stealing hundreds of thousands of dollars.”