Louisville Physician Charged with Multiple Counts of Unlawful Distribution of Controlled Substances, Health Care Fraud, and Money Laundering

LOUISVILLE, KY—A Louisville physician was charged today by a federal grand jury with multiple counts of unlawful distribution of controlled substances, health care fraud, and money laundering, announced David J. Hale, United States Attorney for the Western District of Kentucky.

According to the 14-count indictment, George Kudmani, age 68, operated an obstetrician/gynecological medical practice located at 9702 Stonestreet Road in Louisville, Kentucky. The practice did not employ any other individual with medical training. On average, Kudmani would see more than 35 patients per day. A typical first-time patient would pay $75 for a gynecological exam, and each visit thereafter, the patient would typically pay $35 in cash and receive a Schedule II-V controlled substance prescription without a physical examination.

The indictment charges Kudmani with 11 counts of knowingly and intentionally distributing and dispensing controlled substances, not for a legitimate medical purpose and beyond the bounds of a professional medical practice, between January 2009 and September 2012. The controlled substances allegedly prescribed include oxycodone, alprazolam, clonazepam, hydrocodone, phentermine, and carisoprodol.

Further, Kudmani is charged with two counts of health care fraud for allegedly submitting claims for medically unnecessary services and for writing prescriptions for medically unnecessary controlled substances between January 2009 and September 2012. The fraud charge states that Kudmani would perform medically unnecessary services and bill health care benefit programs for reimbursement.

The other fraud charge states that Kudmani knew patients would have the prescriptions filled at pharmacies and that the pharmacies in turn submitted claims to health care benefit programs for reimbursement.

In addition, Kudmani is charged with one count money laundering for purchasing a 2012 Honda Accord with $15,000 in cash and a $5,971.63 check from money derived from an unlawful activity, that is the unlawful dispensing and distribution of controlled substances and health care fraud.

If convicted at trial, Kudmani faces a maximum potential penalty of 230 years in prison, a fine of $10,250,000, and a three-year period of supervised release.

This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the United States Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Kentucky Medical Fraud Control Unit, and Louisville Metro Police Department (LMPD).

The indictment of a person by a grand jury is an accusation only and that person is presumed innocent until and unless proven guilty.