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Press Release

California Doctor and his Assistant Charged in Scheme to Distribute Prescription Drugs and Commit Health Care Fraud

For Immediate Release
U.S. Attorney's Office, Western District of Pennsylvania

PITTSBURGH - Two California residents have been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of conspiracy to distribute fentanyl, methadone, and oxycodone; distribution of oxycodone; conspiracy to commit health care fraud, and conspiracy to launder money, United States Attorney Scott W. Brady announced today.

The 15-count indictment, returned on July 17, named Dr. Paul Michael Hoover, age 57, and Marcia Ramsier Arthurs, age 60, of Novato, California, as the defendants.

According to the indictment, from March 26, 2015 to June 22, 2018, in the Western District of Pennsylvania and elsewhere, Dr. Paul Hoover and his assistant Marcia Arthurs conspired to distribute fentanyl, methadone, and oxycodone. The indictment also alleges that from January 9, 2018, to June 22, 2018, Hoover and Arthurs distributed oxycodone on multiple occasions. Further, the indictment alleges that from March 26, 2015, to June 22, 2018, Hoover and Arthurs conspired to commit health care fraud. Lastly, the indictment alleges that during that same time, Hoover and Arthurs conspired to launder money.

The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Cindy K. Chung and Rachael L. Mamula are prosecuting this case on behalf of the government.

The investigations leading to the filing of charges in these cases were conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.  The Social Security Administration - Office of Inspector General also participated in this investigation.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Updated July 24, 2018

Drug Trafficking
Prescription Drugs
Health Care Fraud