United States Attorney Clare E. Connors announced that Stephen Timothy Wells, 41, has pleaded in federal court to execute a scheme to defraud health care benefit programmes through the submission of false billings.
Sentencing is scheduled for January 29, 2025, before U.S. District Judge Jill A. Otake.
According to court documents and information presented in court, Wells was the owner and operator of Oahu Spine and Rehab, a physical therapy clinic with locations in Kailua and Aiea.
From July 2013 through early 2020, Wells submitted false claims for payment for physical therapy services to TRICARE, the health care program for United States military service members and their families, and Medicare.
Wells admitted he directed OSR to submit claims to these health care benefit programs using the unique provider numbers of doctors, nurses, and physical therapists, thereby falsely stating that they had personally provided the physical therapy services to patients when, in fact, the services were provided by Wells’s unlicensed staff members.
These unlicensed staff members included massage therapists, athletic and personal trainers, and one individual with no professional certifications.
As part of the Plea Agreement, Wells stipulated that his scheme caused a loss of between $250,000 and $550,000 and agreed to pay a total restitution of $392,157.20, with half to be paid before sentencing. The United States and Wells agreed that Wells should be sentenced to probation and two years in prison.
