LONDON—Additional charges were added to one Perry County physician’s federal case late last month after new evidence apparently led investigators to accusing the doctor of Medicaid fraud, among other things.
James Dustin “Dusty” Chaney, D.O., along with Andrew Krasuski, a physician at Clarion Health and Wellness, and Benny ray Bailey, Jr., who also worked at Clarion, were indicted in federal court in June 2014 on charges related to illegally distributing and dispensing controlled substances and running a “pill mill,” which is defined as a medical practice or facility that routinely prescribes narcotics and controlled substances for non-medical reasons, out of Chaney’s clinic, Clarion Health and Wellness.
Bailey pleaded guilty earlier this year to those charges.
Chaney also had his medical license suspended by the Kentucky Board of Medical Licensure that same month, however, that ruling was amended so that only Chaney’s ability to prescribe controlled substances was suspended.
According to documents from the U.S. District Court Eastern District of Kentucky, Southern Division, a federal grand jury handed down a superseding indictment on July 24. Superseding indictments are supplemental to the original indictment after new evidence comes to light and new charges are brought in the case.
The indictment lists six counts, including one count each of conspiring to unlawfully distribute and unlawfully dispense Schedule II and III controlled substances and one count of maintaining a place for the purpose of unlawfully distributing and unlawfully dispensing controlled substances.
New to the case are charges related to Medicaid fraud, including one count of conspiring to conduct financial transactions knowing the property and money involved was garnered from the unlawful dispensation and unlawful distribution of controlled substances and proceeds from health care fraud, one count of conspiracy to willfully execute a scheme to defraud a health care benefit program in order to make money, and one count of willfully and knowingly listing Andrew Krasuski as the owner of Clarion Health and Wellness in an application for participation in Medicaid, when Chaney was actually the owner.
Chaney is also accused of submitting Medicaid claims for patients he treated at his office at a local hospital as though they had been seen at Clarion in order to collect the funds from those claims.
While the trial had been set for Aug. 11, a motion to continue that has been granted by the court, with a date to be decided in the next 90 days.
Chaney could face more than50 years imprisonment if he is found guilty of these charges, with fines of up to around $3 million and forfeiture of assets acquired with moneys garnered from Clarion.
Amelia Holliday can be reached at 606-436-5771, or on Twitter @HazardHerald.