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Justice News

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

Wednesday, April 6, 2016

Health Care Fraud Charge Filed in Fayette County Addiction Specialists Inc. Case

PITTSBURGH – Four southwestern Pennsylvania residents have been indicted by a federal grand jury in Pittsburgh on multiple charges of distribution and dispensing of Schedule III and Schedule IV controlled substances, conspiracy and health care fraud United States Attorney David J. Hickton announced today.

The 238-count superseding indictment, returned on April 5, named Dr. Dominic W. Dileo, 67, of Uniontown, Pa., Rosalind Sugarmann, 61, of Allison Park, Pa., Brandon S. Eicher, 40, of Smithfield, Pa., and Louis M. Polito, 60, of Uniontown, Pa., as the defendants.

According to the superseding indictment, between January of 2013 and November of 2015, Dr. DiLeo, Sugarmann and Polito unlawfully dispensed or distributed Suboxone or Xanax on more than 200 occasions to Sugarmann and to two other persons whose names were not set forth in the superseding indictment. The superseding indictment further alleges that, from in and around February 2013 until in and around May of 2014, Sugarmann and Eicher defrauded Medicaid in connection with the performance of their duties at Addiction Specialists, Inc. (“ASI”). The superseding indictment describes Sugarmann as an owner of ASI and Eicher as the Clinical Director at ASI. The superseding indictment charges them with defrauding Medicaid by submitting bills to Medicaid for services which they knew were not covered by Medicaid, and by falsifying ASI medical records in preparation for an audit conducted on behalf of Medicaid.

The law provides for a maximum total sentence of 10 years in prison for each instance in which Suboxone was distributed, five years for each instance in which Xanax was distributed, ten years for health care fraud, plus a maximum fine of $250,000 for each count. 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 Shaun E. Sweeney and Stephen R. Kaufman are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation, Drug Enforcement Agency, U.S. Department of Health and Human Service, Office of Inspector General, Internal Revenue Service – Criminal Investigation, and the Pennsylvania Office of Attorney General conducted the investigation leading to the indictment in this case.

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

Healthcare Fraud
Updated April 7, 2016