Arizona telehealth firm householders plead guilty in $64M blueprint

Bibliometric Details: Issue No: 5 | Issue Month:May | Issue Year:2022

The householders of a national telehealth firm pleaded guilty this week to expenses of conspiracy to violate the federal Anti-Kickback Statute and to commit healthcare fraud.

In accordance with a commentary launched by the U.S. Criminal official’s Design of job of the District of Fresh Jersey, Stephen Luke and David Laughlin owned and operated a Phoenix-essentially based mostly firm called RediDoc.

“From September 2017 by December 2019, Luke and Laughlin conspired collectively and with others to unlawfully enrich themselves by submitting and inflicting to be submitted vulgar and counterfeit claims to federal healthcare again applications,” the officers alleged. “They did so by a round blueprint of kickbacks and bribes paid to clinical doctors and solicited from advertising and marketing firms, pharmacies, and companies of durable clinical tools.”  


As outlined in court paperwork, entrepreneurs identified Medicare and TRICARE beneficiaries to draw for costly medicines – similar to pains lotions, scar lotions, eczema lotions and migraine treatment – and sturdy clinical tools, including wrist, shoulder, knee and ankle braces.  

The entrepreneurs then allegedly called beneficiaries to make them conform to engage a scrutinize on the treatment or tools, even when the want for them become unclear and never talked about with their doctor, consistent with the court paperwork.  

Marketers then allegedly transmitted the beneficiaries’ clinical recordsdata and the recorded mobile phone calls – alongside with proposed prescriptions or DME orders – to RediDoc, which bought a residence quantity for every prescription or portray.  

“Luke and Laughlin, by RediDoc, in flip bribed clinical doctors and varied healthcare companies to approve the pre-stuffed prescriptions and DME orders that they had bought,” the court paperwork alleged.  

Most continuously, that quantity ranged from $20 to $30 per session.  

“Luke, Laughlin, and others at RediDoc knew that clinical doctors on the whole did not contact patients or habits bona fide assessments of their want for the prescriptions or DME,” stated the court paperwork.   

“On the different hand, RediDoc secured thousands of prescriptions … from its clinical doctors, who like been positioned in dozens of states right by the country, including Fresh Jersey, and for which RediDoc paid the clinical doctors loads of million bucks in whole,” officers stated.  

In whole, according the company, the two co-householders bought about $32 million from advertising and marketing firms, with RediDoc paying loads of million bucks in kickbacks to clinical doctors who like been positioned in dozens of states right by the country.  

“As fragment of their guilty pleas, Luke and Laughlin admitted that they and their conspirators triggered the submission of vulgar and counterfeit claims to successfully being care again applications totaling more than $64 million,” the USAO alleged in its press free up.  


Laws enforcement companies like ramped up the pressure on telehealth fraud, particularly amid the COVID-19 pandemic.   

An prognosis from November 2021 stumbled on an uptick in fraud-associated enforcement actions regarding telehealth on the grunt and federal stages.   

Correct this past month, an orthopedic surgeon become arrested in a $10 million case, accused of allegedly submitting vulgar claims to Medicare in alternate for kickbacks from telemedicine firms.  


“The draw of the conspiracy become for Luke and his co-conspirators to unlawfully income by paying kickbacks and bribes to clinical doctors so that they would signal excessive volumes of costly beneficiary prescriptions and DME orders, which would then be stuffed by pharmacies and DME companies right by the country,” stated the court paperwork.

Kat Jercich is senior editor of Healthcare IT Files.

Twitter: @kjercich

Electronic mail: [email protected]

Healthcare IT Files is a HIMSS Media e-newsletter.

Content Protection by

Back to top button