2 convicted in $23-million Medicare fraud

The owner and the vice president of a Detroit-area physical therapy clinic both were convicted today in U.S. District Court in Detroit following a six-day jury trial for their part in a $23-million Medicare fraud scheme, federal authorities said.

Bernice Brown, owner and president of Wayne County Therapeutic Inc. in Livonia, was convicted of one count of conspiracy to commit health care fraud and 10 counts of health care fraud. Daniel Smorynski, vice president of the company, was convicted of one count of conspiracy to commit health care fraud and six counts of health care fraud.

According to federal investigators, Brown bought fake physical and occupational therapy files from contractors, then she and Smorynski billed the services reflected in the bogus files to Medicare between October 2002 and January 2007 as if the services had been provided by her company.

Brown instructed her staff to create false documents to insert in the medical files to make it appear that WCT therapists had performed the services. She and Smorynski submitted about $23.2 million in claims to Medicare, and Medicare paid approximately $6,537,630.34.

Each health care fraud charge and the conspiracy charge carry a maximum penalty of 10 years in prison and a $250,000 fine.

Brown was one of 53 people charged last June in a multistate crackdown on more than $50 million in alleged health care fraud.