Healthcare Fraud Out of Control: Is Anybody Paying Attention?


“Health care fraud and kickback schemes burden our healthcare system, drive up insurance costs for everyone, and corrupt both the doctor-patient relationship and the medical profession itself. The members of this scheme treated injured workers and their spines as commodities, to be traded away to the highest bidder. This investigation should send a message to the entire industry: patients are not for sale.” (U.S. Attorney Eileen M. Decker)


In the city of Long Beach California three physicians and a hospital chief executive have confessed to their underhanded roles in a half-billion dollar kickback scam involving hundreds of patients with back problems.

Another day – another ridiculous, U.S. healthcare embarrassment, eh?

As an example, dozens of patients, who were never told by their own doctors that they were getting scammed, traveled hundreds of miles for medical procedures to Long Beach, when local hospitals near their homes could have performed the operations.

Once they arrived, the scam artists  charged the patients’ insurance payers ten times more for spinal implant hardware than was fair. This resulted in the criminals raking in as much as $15,000 from each back operation.

A crook in a suit named James L. Canedo, the former Pacific Hospital senior finance officer from 1999-2013, as well as a chiropractor and  two orthopedic surgeons, are all changing their “not guilty” pleas to “guilty” in a 15-year criminal scheme that paid unscrupulous doctors to refer their patients to Pacific Hospital, even if the hospital was not the appropriate facility for the specified care. Pacific would then routinely bill either the California Worker’s Compensation program, or the federal government, for millions of dollars a year. In fact, investigators have determined that this ethically bankrupt pack of lab coat hyenas stole nearly $600,000,000, by falsifying billing claims. That, according to the U.S. Department of Justice.

Canedo, age 63 from San Pedro,  was convicted in early September of Conspiracy that involved money laundering and mail fraud; Paying/ Receiving Kickbacks involving a federal health care program, and Travel Act violations.  He could get a 5-year state prison term.

Dr Mitchell Cohen

Dr Mitchell Cohen

Doctor Mitchell Cohen, an Irvine surgeon, is guilty of False Tax Return violations, by failing to report the illegal income he received. He received $1,600,000 illegally and faces 3 years in state prison.

Doctor Philip Sobol, another surgeon from Studio City, is guilty of Mail Fraud Conspiracy and violations of the Travel Act. Sobol received $5,000,000 in kickbacks and is facing 10 years in prison.

Dr Philip Sobol

Dr Philip Sobol

Doctor Alan Ivar, a Las Vegas chiropractor, is guilty of Mail Fraud Conspiracy, Money laundering and violations of the Travel Act. Ivar got $1,200,000 and can expect a 5-year sentence.

Are any of these idiots your doctor?

Michael D. Drobot, a former Pacific Hospital CEO, confessed to the long-running scam in 2014 and has cooperated with federal investigators, which is how the rest of these characters got caught. Federal prosecutors also report that Paul Richard Randal, a healthcare marketing agent from Orange, confessed to Conspiracy to Commit Mail Fraud, in an identical scheme involving Tri-City Regional Medical Center.

Paul Richard Randall

Paul Richard Randall

Randal was affiliated with both Pacific and Tri-City, and admitted he recruited doctors to take cash under the table from Tri-City. He faces a 5-year sentence. Federal prosecutors report their investigation – Operation Spinal Cap – involves dozens of other doctors: surgeons, orthopedic specialists, chiropractors, marketers and other medical professionals.

Funny. You won’t see any mention of this garbage behavior on either hospital’s shiny website. The last thing ‘healthcare’ wants is an educated public.

And these lab coat loons will spend less time behind bars than a street thug who robs a gas station.

The investigation is ongoing, and here’s a bit more:


Doctors Killing Doctors: Makes Us Proud to be an American

And every time we address a group regarding the astounding volume of physician crime, at least one person in the audience raises a hand to ask, “Why would a paramedic become a ‘heretic’?”


“This doctor is a new breed of drug trafficker; one who sells blank prescription pads, assault weapons; plots attempted murders, commits arson and distributes diverted prescription pain pills out of his medical office.” (DEA Special Agent James J. Hunt)


A Long Island heart specialist says he isn’t guilty of conspiring to have another cardiologist killed by a hit-man. Nassau County law enforcement say he’s lying.

Dr Anthony Moschetto

How well do you know YOUR doctor?

Doctor Anthony Moschetto, age 54,  was handcuffed and taken into custody in April, on a whopping 77-count indictment, which includes a Murder-for-Hire plot; Arson, Conspiracy, Criminal Solicitation and Criminal Sale of a Controlled Substance.

Just what we want in our medical practitioners, right?

According to the prosecution, Moschetto was in the process of arranging for a contract killer to murder a competing doctor – Martin Handler – so he could take over his patients and make more money.

Like many mental midgets, this idiot unknowingly hired a cop instead. Investigators report that Moschetto paid an undercover detective with blank prescriptions sheets, drugs and handguns to do the deed.


“Dr. Moschetto, by all accounts, was a one-man crime wave.” (WCBS 880 Long Island Bureau Chief Mike Xirinachs)


“The case of medical miscreant Moschetto  started exactly one year ago, in early December 2014, as a simple investigation into the sale of prescription drugs,” reports Madeline Singas, Nassau County District Attorney. But detectives soon realized things were far more complex, revealing serious probabilities of arson, assault weapons, and a murder plot.

The murder-for-hire scheme was discovered when an undercover officer bought assault weapons and heroin from the shady doctor, who then stupidly mentioned that he needed dynamite to blow up a building.

The prosecution states they can prove that Moschetto directed men to burn down Doctor Martin Handler’s office in Great Neck last February. The clinic was damaged but not destroyed, authorities say.

The two men were caught and arrested in the arson case.

The doctor then paid an undercover officer with blank prescriptions and cash for the assault and  murder, of the other cardiologist, according to the court record, which goes on to state that, “At one point, Doctor Moschetto directed his ‘hit-man’ to assault the victim’s wife, too.”

In a police raid on Moschetto’s Long Island home, investigators discovered a cache of more than 100 weapons, including assault rifles, exotic fighting knives and a hand grenade, according to authorities. Many of the weapons were hidden in a secret basement room, accessible by a ‘James Bondian’ sliding bookshelf.

Over the half-year investigation, undercover agents bought numerous assault weapons; more than 400 Oxycodone pills and 200 bags of heroin from Moschetto, so he set himself up pretty good.

If convicted, this lab coat loon faces  25 years in prison, according to the district attorney.

“Doctors are supposed to ensure the health and wellbeing of people, but Doctor Moschetto is believed to have replaced that responsibility with brazen, callous and criminal acts,” District Attorney Singas said.

Here’s another look at this case:


 For more detail on jaw-dropping physician shenanigans, order a copy of our books. They just might save your life. as they entertain you.


Another Drugged-up MD Treating Patients

The Scourge of Modern America  . . .

The Scourge of Modern America . . .

“Over the course of her activities, she went through in excess of 12,000 hydromorphone pills.”  (The court record)


A drug-addicted family practitioner in Canada faces a prison term as the New Year approaches.

It was one year ago when Doctor Sarah Louise McArthur, age 43, confessed to felony charges of Fraud, Drug Theft and Forgery. And this week federal prosecutor Kathleen Nolan announced her office is encouraging the court to mete out a 5-year prison term.

McArthur, who lived in the city of Cambridge, admitted to the crimes, which took place between 2012-2014 after she stated she became addicted to fentanyl, a powerful medication usually prescribed to cancer patients.

McArthur acknowledged that she stole a blank prescription pad from an exam room at St. Joseph’s Hospital in London, near Ontario. This enabled her to forge other doctors’ names for prescriptions of hydromorphone as well as  fentanyl – both of which are painkillers. Fentanyl is nearly 100 times more powerful than morphine, and is delivered via slow-release skin patches.

“Over the course of her activities, she went through in excess of 12,000 hydromorphone pills,”  the prosecution said. She took many of the pills herself, and traded many for other drugs.

It is not clear exactly at what point during her heavy  drug use she stopped treating patients, so there is no accurate way to determine how many patients she might have treated while under the influence.  The court record indicates she had promised to stop practicing medicine in 2012. Her attorney, Mark Parrott, stated said she voluntarily agreed to stop treating patients in 2009.

Some of the theft charges are the result of the doctor fraudulently billing Ontario insurance payers for the prescriptions. Even after her first arrest for prescription fraud in January 2012, and while out on bail, McArthur continued falsifying even more  prescriptions.

The doctor’s  guilty plea included Possession of hydromorphone for the purpose of Trafficking; Possession of fentanyl; Fraud; Theft under $5,000 and Creating Falsified Documents.

McArthur is expected to be sentenced in January.

“It’s a very serious set of circumstances,” Justice Gary Hearn said.


Alaska Doctor ‘Guilty’ in Child Porn Case: U.S. Medicine’s 43rd Such Embarrassment This Year

Dr Greg Salard

Dr Greg Alan Salard

It only took a federal jury less than two hours to convict an Alaskan family doctor on child pornography charges. It wasn’t exactly rocket science to figure out: the perverted physician had tracked his internet footprints all over some pretty disgusting websites.

Doctor Greg Alan Salard, one of only four doctors in the town of Wrangell, was found guilty of Distributing and Receiving Child Pornography. A 12-person jury returned  the verdicts in U.S. District Court after deliberating 90 minutes last summer.

Judge Timothy Burgess presided over the trial, which took place in the Juneau Federal Building.

According to Assistant U.S. Attorney Kyle Reardon, Salard had downloaded nearly 600 files of graphic child images, and his “last viewed” items listed on his computer’s media player before his arrest,  were child pornographic videos.

Salard was arrested at his Wrangell home in October 2014, after FBI website investigators traced illicit activity to Salard’s laptop that had been going on since at least February. Investigators could easily see that the wayward physician had shared more than 100 sexually explicit files of children with others, by utilizing a peer-to-peer, file sharing network. Salard was handcuffed and taken to jail after detectives searched his home and gathered up his laptop computer as evidence. They found that the doctor had just started a program to erase the computer’s hard drive, when officers got to his house.

The physician had been employed by Alaska Island Community Services at Wrangell Medical Center as chief of staff, where he treated both children and adults. Those facilities report he has been terminated.

Salard, a 54 year-old family medicine specialist, will be extradited to Louisiana to face an older Rape charge, after his sentencing in Alaska in December. He could get a 20-year term for each offense, as well as a $250,000 fine.

Here’s more:


The Case of Doctor ‘Sneaky Snake’


How do you scare your ex? Well, here’s one way . . . .


In the picturesque beach town of Monterey California a physician has been found guilty of Stalking in a goofy, teenage saga that involved a former husband and his girlfriend.

Dr Mary Kay Brewster

Some MDs are classy. Others? Not so much


Doctor Mary Kay Brewster, a 58-year-old Ob/Gyn specialist, was convicted on two charges of felony  Stalking; One charge  of felony Vandalism, and Trespassing.

According to the prosecution the stalking began after the doctor and her husband separated. What followed was physician Brewster sending harassing text messages; destroying property at her husband’s place of employment; repeatedly calling his cellphone; poisoning plants; vandalizing his car and physically assaulted him.

The court record also shows the wayward doctor, who lived in Salinas,  broke into the man’s home while he was away and released rats and a large python in the house. Brewster  also stalked her husband’s new girlfriend, a nurse.

Nurse witnesses testified that Doctor Brewster called the nurse a “skank” in front of patients, spattered bodily fluids on her in a surgical suite and created a hostile work environment. The doctor was caught on a security crawling under the victim’s  car at 4:30 in the morning.

This particular lab coat loon is scheduled to be sentenced in January.

Here’s another look at this soap opera:

Our Observations:

Mary Kay Brewster MD graduated from Dartmouth Medical School in 1993. We’re guessing her alma mater alumni association will think carefully before inviting her to speak at a future commencement ceremony.

On the other hand, in the Twilight Zone of medicine . . . maybe it won’t bother them in the least. After all, you can bet the house that the California State Medical Board won’t be even slightly perturbed that this twit sneaked a snake into somebody’s bedroom.

Never forget: No profession in society is held to a lower standard of discipline than the errant physician population. Here’s what you’d find on this medical muttonhead if you decided to search her California State Medical Board file:

Public Record:

Administrative Disciplinary Actions None found
Court Order None found
Misdemeanor Conviction None found
Probationary License None found
Felony Conviction None found
Malpractice Judgment None found
Hospital Disciplinary Action None found
License Issued with Public Letter of Reprimand (Non-Disciplinary) None found
Administrative Citation Issued None found
Administrative Action Taken by Other State or Federal Government None found
Arbitration Award None found


Want to Check Your Doctor’s Background? Start Here


In order to make it easier for our readers to look up their own doctors, we have created a list of state medical boards’ websites. Some state boards have come a long way over the past 5 years in simplifying the information ‘search’ procedure – others leave much to be desired. Many boards appear to do all in their power to obscure criminal or unethical behaviors. A few appear to actually remember what their stated mission is supposed to be: public safety.

One important note: no state medical board that we are aware of, will inform you of doctor-crimes currently under investigation, and none of them – so far as we know – report medical malpractice cases. The best you can hope for is that serious misbehavior might be listed, and that your doctor at least has a valid medical license.

New Hampshire
New Jersey  • Disciplinary Actions
New Mexico
New York • Disciplinary Actions
North Carolina
North Dakota
PennsylvaniaDisciplinary Actions
Rhode Island
South Carolina
South Dakota
Washington DC
West Virginia / Osteopathic Doctors

One final note of interest: 6 years ago we wrote a humorous – but totally accurate – book called “America’s Dumbest Doctors.” The book included the names of over 400 physicians who had committed serious misbehavior and/or crimes. Very, very few of those physicians’ negative histories were listed in any state medical board data base.

That fact partially explains why we walk around with steam coming out of our ears most of the time.

Have a terrific – and safe – week.