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Anti-Kickback Statute Conviction of Dr. Henry Watson

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Anti-Kickback Statute (AKS) Conviction of Dr. Henry Watson

The Anti-Kickback Statute Conviction of Dr. Henry Watson ends a four year struggle by Dr. Watson.

The Anti-Kickback Statute (AKS) is a federal law designed to prevent corruption in healthcare. It prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by federal healthcare programs, such as Medicare and Medicaid.

Key Points:

  • Remuneration: This includes anything of value, not just cash. It can be free rent, expensive meals, or excessive compensation for consultancies.
  • Criminal Liability: Violating the AKS can result in severe penalties, including fines and imprisonment
  • Purpose: The statute aims to protect against healthcare fraud and abuse, ensuring that medical decisions are made based on patient needs rather than financial incentives.

Dr. Henry Watson, is from Oakland, California.  In December, 2023 he was convicted of accepting kickbacks for patient referrals to home health agencies, health care fraud, and false statements relating to a health care matter. The case went to trial. 

Other Doctors Convicted

Dr. Bhupinder Bhandari, Dr. Zheng Zhang, Dr. Gerald Myint and Dr. Juan Posada.were also arrested and pled guilty in 2022.

The Allegations

The core allegation was that Dr. Watson referred patients for unnecessary home health services billed to Medicare. The United States Attorney argued that Dr. Watson solicited patients by visiting retirement homes.

Also involved in the charges was Amity Home Health Care. The allegation was that Amanda Singh who was Amity’s CEO paid Dr. Watson approximately $3,000 a month to refer Medicare patients. This was pled to by Ms. Singh in August of 2022. It was admitted as a form of kickback. Other doctors who pled guilty was Dr. Bhupinder Bhandari, Dr. Zheng Zhang, Dr. Gerald Myint and Dr. Juan Posada. Each pled guilty to violations of the Anti-Kickback Statute.

Dr. Watson will be sentenced Friday, May 10 2024.

What Does the Anti-Kickback Statute (AKS) Prohibit?

The Anti-Kickback Statute is a federal crime (42 USC § 1320a-7b(b)). It prohibits offering, paying, soliciting or receiving anything of value to induce or reward referrals or generate Federal health care program business. It requires a “knowing” and “Willful” criminal intent. You can’t violate this law by accident.

What are the Penalties for Violating the Anti-Kickback Statute (AKS)?

The penalties for an Anti-Kickback Statute (AKS) violation are both criminal and civil (money based). The criminal fines are up to $25,000 for each violation and up to 5 years in prison for each violation. The civil penalties include exclusion from federal healthcare programs and
$ 50,000 for each violation PLUS paying three times the total amounts received as kickbacks.
per violation

Order of Suspension

Following his conviction an Order of Suspension was issued preventing Dr. Watson from participating in the Workers' Compensation system.  It starts this way:

WHEREAS, Labor Code section 139.21(a)(1)(A) requires the Administrative Director to suspend any physician, practitioner, or provider from participating in the workers’ compensation system as a physician, practitioner, or provider if the individual has been convicted of any felony or misdemeanor described in Labor Code section 139.21(a)(1)(A);

See the entire Order of Suspension for Dr. Watson

On April 22, 2024 the Medical Board of California filed an Accusation against Dr. Watson seeking to revoke his medical license.  Read the medical board accusation against Dr. Watson.

Federal Court Defense for Healthcare Fraud Charges

Facing federal criminal charges can often end a doctor’s career. While there are many defenses available, few are truly effective against well-prepared cases. Daniel Horowitz is a renowned federal defense lawyer with a global reach. If you are charged with healthcare fraud crimes and need the best defense possible, call Daniel Horowitz.

Based in Lafayette, California (Contra Costa County), Daniel provides federal defense services throughout California and in all federal courts across the United States.

MEDICAL FRAUD DEFENSE LAWYERS at Lawyers in Lafayette are expert at defending federal and state medical fraud charges.  Our office is in Lafayette, California (Contra Costa County) and our practice is nationwide.  We have had recent cases in Kansas City, New York, San Diego and Tehama County.  Call us if you need help.