Press Release – Houston Area Doctor Found Not Guilty on Eighteen Counts of Healthcare Fraud
Houston Area Doctor Found Not Guilty on Eighteen Counts of Healthcare Fraud
in the District Court for the Southern District of Texas
A Houston area physician, Dr. Gary Spangler, was charged by indictment with eighteen counts of healthcare fraud and seven counts of money laundering in March of 2018. Spangler hired the attorneys at Odom, Davis & Hobson. Outside counsel, William McMurrey, assisted in the representation of Dr. Spangler.
The government’s case alleged Dr. Spangler knowingly submitted false claims to Medicare for chelation treatments he performed on his patients. The chelation therapy claims accounted for over $65 million billed to Medicare. In addition, the government alleged Dr. Spangler billed for chelation treatments without providing proper supervision over support staff as required by federal regulations. The money laundering counts were based on Dr. Spangler’s transfer of money paid by Medicare for chelation treatments.
After a nine-day trial, Chief Judge Lee Rosenthal found Dr. Spangler not guilty on all counts in the indictment. The Court ruled there was insufficient evidence to find Dr. Spangler knew the claims were false when they were submitted. Without this knowledge, the government could not prove Dr. Spangler intended to defraud the Medicare program as required by the criminal statute.
Not guilty verdicts are exceedingly rare in the federal system. Over 98% of federal indictments end with a conviction. As noted by Judge Rosenthal, the work by the attorneys at Odom, Davis & Hobson was outstanding in proving their client’s innocence. This case will be viewed as a landmark victory for medical necessity cases throughout the United States.