Ohio Chiropractor Sentenced for Workers’ Comp Fraud Scheme

A Fairfield, Ohio, chiropractor who pled guilty in July to felony workers’ compensation fraud has been ordered to repay the Ohio Bureau of Workers’ Compensation (BWC) more than $200,000.

Bruce E. Holaday, owner of the Back and Spine Center, was sentenced in a Franklin County courtroom. In addition to restitution, the judge sentenced Holaday to 30 days in jail, placed him on five years of community control, and ordered him to pay $12,500 in investigation costs and an unknown amount for court costs.

Holaday’s sentencing culminates a sweeping fraud investigation conducted by the BWC and Ohio Attorney General Mike DeWine’s office.

The investigation, dubbed ‘Operation Backbreaker,’ has already resulted in the conviction of four of Holaday’s associates for their role in the scheme to defraud the state’s workers’ compensation system, according to the BWC.

The investigation began after BWC’s Special Investigations Department (SID) received an allegation that Holaday was unlawfully using the names and provider identification numbers of the chiropractors with whom he practiced to conceal from BWC his direct involvement in rendering or managing treatment for injured workers.

Holaday had been decertified as a BWC health care provider and was prohibited from seeking and receiving reimbursement from BWC.

BWC special agents posed as injured workers and sought treatment at two clinics. Investigators found that in addition to concealing his direct involvement in treating injured workers to circumvent his exclusion, Holaday also billed and received payment from BWC for treatment never provided to injured workers. In carrying out the scheme, Holaday created bogus treatment records to substantiate the fraudulent bills submitted to BWC.

In addition to repaying $106,566.13 in restitution, which he HAS paid in full, Holaday is jointly liable with co-defendant Dr. Gary Berner for repaying an additional $104,350.53.

SID’s investigation already resulted in the conviction of four associates at Holaday’s chiropractic clinic.

Dr. Gary T. Berner pleaded guilty to felony workers’ compensation fraud for his active involvement in the scheme. He was sentenced to five years community control and ordered to pay over $110,000 in restitution and investigative and court costs. As part of his community control, Dr. Berner was also handed a conditional sentence of 180 days in Franklin County jail.

Additionally, Dr. Dennis M. Mulcahy; Charles E. Hoskins, Jr.; and Debra A. Ramge have all pleaded guilty to felony workers’ compensation fraud.

Source: Ohio BWC

Topics Fraud Workers' Compensation Ohio