Brookhaven Psychologist, Two Accomplices Convicted of Health Care Fraud

JACKSON, MS—Acting United States Attorney Stan Harris announced today that on June 4, 2009, a jury convicted Allan K. Hearne, of Brookhaven, Mississippi of Conspiracy to Defraud the United States, Health Care Fraud, Obstructing a Federal Investigation and Making a False Statement to the Social Security Administration.

Hearne was indicted on November 18, 2008. He was the owner and operator of Brookhaven Psychiatry and Psychological Associates in Brookhaven and was himself a Psychologist practicing in Brookhaven. Hearne conspired with others to submit false and misleading patient diagnosis to the Social Security Administration in order to assist many of his patients obtain disability benefits. Once a patient was approved for disability benefits, Hearne then routinely billed Medicare, claiming that he was providing psychological health care services to patients on a weekly or semi-weekly basis, when in fact, he was treating these patients only a few times a year, if at all. As part of the scheme, Hearne and his accomplices would create false patient documentation in order to substantiate the false bills. This false documentation was provided to federal investigators during the investigation in response to a subpoena issued to Hearne seeking patient files. Over the course of the scheme, Hearne submitted more than $1,500,000.00 in false bills to Medicare and received more than $600,000.00 in stolen government funds.

Glenn Smith, of Brookhaven, Mississippi, also indicted with Hearne, had previously pled guilty to Making A False Statement Relating to Health Care. Smith was the person responsible for preparing the fraudulent Medicare claim forms that were submitted by Hearne. Smith also assisted Hearne prepare and submit fraudulent patient documentation to the government during the investigation.

Chris Thomas, also of Brookhaven, Mississippi, previously pled guilty to Accessory After the Fact to Conspiracy to Defraud the United States. Thomas worked for Hearne as a receptionist, where he helped Hearne submit false documentation to the Social Security Administration and to federal investigators.

Sentencing is set for Hearne on August 24, 2009 at 9 A.M. in front of United States District Judge Daniel P. Jordan, III., in Jackson, Mississippi. Hearne faces up to 75 years in prison and 1.75 million dollars in fines. The defendants will be forced to pay restitution and the United States is seeking to forfeit over $500,000.00 in ill gotten gains from Hearne.

The case was in investigated by the Office of the Inspector General of the United States Social Security Administration and the Federal Bureau of Investigation. Assistant United States Attorneys Scott Gilbert and Pat Lemon prosecuted the case on behalf of the United States.