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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Kentucky

Thursday, September 25, 2014

Louisville Physician Charged With Prescribing Medications That Resulted In The Death Of A Patient

– Charges Include Multiple Counts Of Unlawful Distribution Of Controlled Substances, Health Care Fraud And Money Laundering

LOUISVILLE, Ky. – A Louisville physician was charged today, by a federal grand jury, with prescribing medications that resulted in the death of a patient, as well as multiple counts of unlawful distribution of controlled substances, health care fraud and money laundering announced David J. Hale, United States Attorney for the Western District of Kentucky.

According to the superseding indictment, George Kudmani, age 69, between July 29, 2009 and May 3, 2010, executed a scheme to defraud Medicare that ultimately resulted in a patient’s death on May 5, 2010. According to the charge, Kudmani fraudulently submitted claims for medically unnecessary services and dispensed medically unnecessary controlled substance prescriptions to the patient, in exchange for money, knowing that the patient would fill her prescriptions at pharmacies and pharmacies in turn would submit claims to health care programs for reimbursement. It’s alleged that those prescriptions ultimately resulted in the patient’s death.

Further, defendant Kudmani is charged with a second count of health care fraud for falsely and fraudulently billing Kentucky Medicaid (Passport) and other medical benefit programs by submitting claims for medically unnecessary Transvaginal Ultrasounds (TVS), TVSs not performed, and billing for TVS reports that were never prepared for patients, between January 2009 through September 2012.

The superseding indictment charges Kudmani with eleven additional counts, (for a total of 22) of unlawful distribution and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between July 2009 and September 2012. The controlled substances allegedly prescribed were Oxycodone, a schedule II controlled substance, and Hydrocodone, a schedule III controlled substance.

In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.

Beginning in December of 1980, Kudmani operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road, in Louisville, Kentucky. The practice did not employ any other individual with medical training. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.

Kudmani was initially charged in a 14 count indictment on December 4, 2013. If convicted at trial, Kudmani faces a maximum potential penalty of life in prison, a fine of $14,500,000, and a 5 year period of supervised release.

This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit and Louisville Metro Police Department (LMPD).

The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.

Updated December 15, 2014