Michigan Doctor And Two Co-Conspirators Plead Guilty to Fraud, Kickback Violations Involving UAW Health Care Fund

Dr. April Tyler, a Fenton, Michigan area doctor, pleaded guilty to violating the anti-kickback statute on November 6, 2019. Dr. Tyler’s conspirators, Patrick Wittbrodt, 44, of Grand Blanc, Michigan and Jeffrey Fillmore, 31, of Clio, Michigan pleaded guilty to healthcare fraud on March 6, 2019 and November 19, 2019 respectively.

On October 19. 2021, a sentencing agreement for Dr. Tyler calling for an 18 to 24-month prison sentence was accepted. She must also undergo three years of supervised release upon her release. Tyler was an osteopathic physician who owned and operated Fenton Creative Healthcare on North Long Lake Road. Authorities say that she and two co-defendants, Patrick Wittbrodt and Jeffrey Fillmore, executed a scheme to defraud Medicare and other health insurers by submitting or causing others to submit false claims for prescription pain creams, scar creams, pain patches and vitamins authorized by Tyler, who previously admitted to overbilling Blue Cross/Blue Shield by $500,000.

In the sentencing memo, prosecutors said that her record “reflects that she has engaged in healthcare fraud, conduct related to health care fraud, and prescription drug diversion over a long period of career.” Tyler also agreed to not renew her medical license.

Fillmore and Wittbrodt were scheduled to be sentenced in November 2021 for their roles in the scheme, after both previously entered a guilty plea to a single count of conspiracy to commit health care fraud.

The defendants’ complex fraud and kickback scheme involved UAW members and medically unnecessary compounded pain creams, scar creams, pain patches and/or vitamins. According to court documents, the defendants caused an approximate $8,000,000 loss to Medicare and Blue Cross Blue Shield of Michigan (“BCBS”). Some of this money was stolen from UAW members’ prescription insurance accounts.

Court documents laid out the defendants’ scheme:

Due to the high reimbursement rate paid by Medicare and BCBS for prescription pain cream, scar cream, pain patches and/or vitamins defendants targeted these insurance plans. Defendant Fillmore had acquaintances and personal contacts at the UAW through his job and various family members. Defendants Fillmore, Wittbrodt and Tyler would then schedule time at various UAW meetings where defendants would tout pain cream, scar cream, pain patches and vitamins to the UAW members. An aspect of defendants’ presentation was that the UAW members could receive their prescriptions free — without paying a prescription drug copay at the pharmacy. UAW members did not realize that acceptance of the “free” medications would cost their health care fund millions of dollars.

Defendants would then collect the UAW members’ insurance information along with their family members’ insurance information. Defendant Dr. Tyler would then authorize the pain cream, scar cream, pain patch and/or vitamin prescriptions for the UAW members and/or their family members. Defendant Dr. Tyler did not establish a valid doctor-patient relationship with any of the UAW members, did not perform a physical exam and did not determine medical necessity for the prescriptions she wrote for the UAW members. The prescriptions were not, therefore, legally eligible for reimbursement from the various insurance companies. Defendant Dr. Tyler also pre-signed prescription forms and allowed defendants Wittbrodt and Fillmore to choose which compounded creams, patches and vitamins to write on the prescriptions.

Defendant Wittbrodt directed the prescriptions to various pharmacies. The pharmacies would fill the prescriptions, bill the UAW members’ insurance and pay a monetary kickback to Wittbrodt. Defendant Wittbrodt would then provide remuneration to defendants Dr. Tyler and Fillmore from the kickback he received. The prescriptions were periodically re-filled and/or re-billed, regardless of whether the UAW member requested a refill or not. The prescription co-pay was waived at the pharmacy for the UAW members.

Also according to court records, each defendant has agreed to the following federal sentencing guidelines:

Patrick Wittbrodt: 70-87 months in prison
Dr. April Tyler: 18-24 months in prison
Jeffrey Fillmore: 37-46 months in prison

““These unlawful prescriptions cost the UAW health care fund millions of dollars, and the end result was a rip-off of the hard working men and women of the union,” said United States Attorney Matthew Schneider. “We will continue to aggressively prosecute health care fraud, and step in to protect UAW workers across Michigan.”

“We rely on medical professionals to uphold the integrity of the prescription drug programs by only prescribing medications that are medically indicated and necessary. Circumventing this process solely for personal, financial gain compromises the integrity of these systems and takes away valuable healthcare dollars from patients who truly need the medications. HHS-OIG will continue to work with our law enforcement partners to protect and deter fraud within federal health care programs,” said Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.

“Medical professionals and others should know that we will investigate and bring to justice those involved in illegal distribution of unneeded drugs,” said Special Agent in Charge William P. Conway, FDA Office of Criminal Investigations Chicago Field Office.

“This case demonstrates that collaboration between law enforcement and private insurance investigators is essential in prosecuting those responsible for federal healthcare fraud and kickback violations,” said by Dan Crowell, Blue Cross Blue Shield of Michigan, Director of Corporate and Financial Investigations.

This case was investigated by the United States Department of Health and Human Services – Office of Inspector General, the United States Food and Drug Administration and Blue Cross Blue Shield of Michigan, under the supervision of the U.S. Attorney’s Office for the Eastern District of Michigan. Assistant U.S. Attorney Michael Heesters and Wayne Pratt are prosecuting the case.