Chicago Podiatrist Sentenced for Health Care Fraud Charges

St. Louis, MO – Dr. John Dailey was sentenced to 27 months in prison and ordered to pay $291,413 in restitution to the Centers for Medicare and Medicaid Services.

According to court records, Dr. Dailey, a podiatrist, was employed by Aggeus Healthcare, a Chicago company, to provide podiatry services to residents of nursing homes and other long term care facilities in Missouri and other states. To justify unnecessary services to patients, Dr. Dailey stated in his treatment notes that the patients had conditions that they did not have or grossly exaggerated the conditions the patients did have. As examples, Dr. Dailey stated that patients were experiencing pain, had problems walking, and had peripheral vascular disease when these conditions did not exist.  To increase his compensation, at times, Dr. Dailey billed for procedures that would have required from 19 to 28 hours of work in a single day, which did not account for time spent traveling, eating, or sleeping.

Dr. Dailey, 60, currently residing in Las Vegas, pled guilty on July 6, 2017 to two felony counts of healthcare fraud and appeared on Wednesday for sentencing before United States District Judge Ronnie L. White.

This case was investigated by the U.S. Department of Health & Human Services, Office of Inspector General, Office of Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.