Plea Agreement Filed in U.S. v. Gabriele Eye Institute, P.C.

SOUTH BEND, IN—Pursuant to a plea agreement filed with the Court today, defendant Gabriele Eye Institute, P.C. (“GEI”) plead guilty to making false statements in connection with the delivery and payment of health care benefits and services.

Pursuant to the terms of the plea agreement, GEI and the government agreed that GEI received payments from health care benefit programs including Medicare, Indiana Medicaid, and Anthem in an amount more than $200,000 to which GEI was not entitled. GEI and the United States agreed that the stipulated restitution amount (the amount to be repaid by GEI) is $205,109.00.

The guilty plea was authorized by 1st Source Bank, the Special Administrator of the Estate of Philip Gabriele. The Estate holds and controls all of the stock of GEI.

The plea agreement provides for the sale of all of the equipment of GEI, including ophthalmic equipment, and further provides for the proceeds from such sale to be used to pay the stipulated restitution amount.

The plea agreement also provides for the forfeiture to the United States of certain monies generated by the sale of GEI’s main office property located at 3730 Edison Lakes Parkway, Mishawaka, Indiana 46545, which is the subject of a separate civil forfeiture action filed by the United States. Specifically, 50 percent of the net proceeds shall be forfeited to the United States. This 50 percent share is expected to be more than $300,000, which monies can in the discretion of the United States be utilized to pay any shortfall in restitution payments by GEI.

This case was investigated by the Office of the Indiana Attorney General-Medicaid Fraud Control Unit, the Federal Bureau of Investigation, and the Department of Health and Human Services-Office of the Inspector General. This case is being prosecuted by Assistant United States Attorney Donald Schmid.