Pain MD owner, employees accused of $38M health care fraud

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(Photo: MGN Image)

NASHVILLE, TN (AP) — The majority owner of Pain MD and three employees are charged with more than $38 million in health care fraud.

The charges are part of an indictment filed Tuesday by the U.S. Attorney’s Office in Nashville. It charges that between 2010 and May 2018, Michael Kestner, Brian Richey, Jonathan White, and Daniel Seeley conspired to enrich themselves by submitting fraudulent claims to Medicare, Medicaid and TRICARE.

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Kestner, of Nashville, was the owner and CEO of MedManagment Inc. and the majority owner of Pain MD. MedManagment also managed Pain MD, which operated clinics in Tennessee, Virginia, and North Carolina. Richey, of Cookeville, White, of Tullahoma, and Seeley, of Batesville, Mississippi, were employees.

If convicted, the defendants face up to 10 years in prison and a $250,000 fine on each count.