Trial Underway for Clinic Owners Charged with Health Care Fraud

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Opening statements begin for the owners and operators of two medical clinics in Lawrence County, Ohio, charged with federal health fraud.

In June 2011, 40 local, state and federal agencies raided Advance Family Medical Center and Watkins-Tsai Imaging Center in Coal Grove.

In June 2013, Peter Tsai, 44, his father, Tahsiumg Tsai,72, and mother, Ruey Tsai, 66, along with his cousin Wi Lih Sheih, aka “Wendy”, 41, were charged with conspiracy to improperly charge government insurance programs for medically unnecessary procedures.

Peter Tsai was also charged with health care fraud, smuggling and money laundering.

His parents were also charged with health care fraud.

The trial for the four began with jury selection Monday in U.S District Court in Cincinnati.

Prosecutors say Peter Tsai owned Advance Family Medical Center and his parents owned Watkins-Tsai Imaging. Sheih worked at both clinics.

At the time of the raid, Lawrence County Sheriff Jeff Lawless told that he believed the clinic was responsible for more cat scans since 2008 than any other office in the nation.

Lawless also told that some patients have received 120 to 140 cat scans in a two-year time frame.

“The grand jury has charged them with performing diagnostic CT scans that were medically unnecessary, including multiple scans of the same body part for the same patient weeks apart,” said U.S. Attorney Carter Stewart at the time of the indictment.. “They are also charged with performing and billing for CT scans for medically unnecessary injections of an osteoarthritis product, Synvisc, in knees, including injection into young adults without any proper diagnosis of osteoarthritis.”

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