Chicago U.S. Attorney’s Office Creates Unit to Prosecute Healthcare Fraud

CHICAGO — Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, today announced the creation of a new unit dedicated to prosecuting criminal healthcare fraud violations.

The Health Care Fraud Unit will operate within the office’s Criminal Division. The unit will prosecute defendants in all types of healthcare fraud, from providers who engage in fraudulent billing schemes to doctors who falsify patients’ diagnoses to justify expensive tests or procedures that aren’t medically necessary.

“Every year, healthcare fraud causes millions of dollars in losses to Medicare and private insurers,” said Acting U.S. Attorney Levin. “Health care fraud also often exploits patients through unnecessary or unsafe medical procedures. Healthcare providers who cheat the system must be held accountable. Our office has successfully prosecuted numerous healthcare fraud cases in recent years. The new Health Care Fraud Unit will build on that success and bring greater focus, efficiency, and impact to our efforts in this important area.”

The unit will include five prosecutors, led by Assistant U.S. Attorney Heather McShain. Assistant U.S. Attorney Stephen Chahn Lee will serve as the unit’s Senior Counsel.

The office has a long history of prosecuting significant healthcare fraud cases, and the new unit is expected to expand on those efforts. Last week, the office participated in the most critical healthcare fraud enforcement action in the Department of Justice's history. The national takedown involved more than 400 defendants, including 15 individuals charged in the Northern District of Illinois.

Other significant healthcare fraud prosecutions include a north suburban chiropractor and his brother and father, who were sentenced to prison with a phony billing scheme that bilked insurance carriers out of over $10.8 million. DR. VLADIMIR GORDIN JR., VLADIMIR GORDIN SR., and ALEXSANDER GORDIN used their chiropractic clinic, Gordin Medical Center S.C., to falsely bill for medical services that were either not provided or weren’t medically necessary. The Gordins were sentenced to prison terms earlier this year. Vladimir Gordin Jr. was sentenced to seven years; Vladimir Gordin Sr. was sentenced to two and a half years; and Alexsander Gordin was sentenced to two years.

The office recently secured ten criminal convictions in a multi-year investigation into Sacred Heart Hospital in Chicago. For over a decade, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that Medicare and Medicaid would reimburse. The fraud scheme earned Sacred Heart millions of dollars from Medicare and Medicaid. The convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, chief operating officers; DR. VENKATESWARA R. “V.R.” KUCHIPUDI, a physician; as well as four other physicians. Sacred Heart closed in 2013.

Fraud in the home healthcare and hospice industries have also been the subject of prosecutions, and the Health Care Fraud Unit will continue those efforts. The office’s investigation of home healthcare fraud has resulted in convictions of doctors, nurses, marketers, and executives at multiple companies, including DIKE AJIRI, the former owner of Chicago-based Mobile Doctors; BANIO KOROMA, a physician at Mobile Doctors; and DIANA JOCELYN GUMILA, the former clinical head of Schaumburg-based Doctor at Home. An investigation of PASSAGES HOSPICE in Lisle recently resulted in prison sentences for multiple defendants, including owner SETH GILLMAN, who was sentenced earlier this year to six and a half years in prison; and ANGELA ARMENTA, Passages’ former director of certified nursing assistants, who was sentenced last month to 20 months in jail.

 The Health Care Fraud Unit will also focus on prosecutions related to the diversion of controlled substances, which is an area of emphasis for the office as it continues to battle the opioid crisis. The office has previously prosecuted significant diversion cases, including procuring the guilty plea of DR. SATHISH NARAYANAPPA BABU, who formerly owned Anik Life Sciences Medical Corp. in southwest suburban Darien. Dr. Babu prescribed controlled substances, including OxyContin and Hydrocodone, to specific patients without having examined them. Dr. Babu was sentenced in 2015 to 18 months in prison.

In announcing the new unit, Acting U.S. Attorney Levin acknowledged the cooperation and determination of the office’s investigative partners, including, among others, the Chicago offices of the Federal Bureau of Investigation, U.S. Department of Health and Human Services Office of Inspector General, U.S. Department of Labor’s Office of Inspector General, U.S. Food and Drug Administration, and U.S. Postal Inspection Service.

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About Stephen Lee Law

At the heart of every press release from the Law Offices of Stephen Chahn Lee lies a diverse and illustrious career that traverses the realms of journalism, law, and medicine with precision. From a pre-med student to a respected journalist, a lawyer at a premier New York firm, and an influential federal prosecutor, Stephen Lee's unique journey underpins the profound insights and captivating storytelling that define the firm's communications. Since founding his solo practice in 2022, Lee has tackled complex, high-stakes legal matters with the enthusiasm that marked his tenure at Debevoise & Plimpton LLP and his decisive victories as an Assistant United States Attorney. His firm's press releases are more than just news; they are narratives enriched by his comprehensive legal expertise, commitment to justice, and active community engagement. In Chicago, where he practices, writes, and volunteers, Lee strives for a positive impact beyond the courtroom.

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