Ex-chiropractor gets 4 years in prison for billing fraud

Published: 2009-03-26 13:14:06
Author: Jason Cato, Pittsburgh Tribune-Review, December 19, 2008

After more than two years of delays, a federal judge Friday sentenced a former Westmoreland County chiropractor to prison for masterminding the largest health care fraud in Western Pennsylvania history.

U.S. District Judge Gary L. Lancaster ordered Douglas Henderson, 47, of Lower Burrell to spend four years in prison and pay $12.1 million in restitution to Highmark Blue Cross/Blue Shield. Henderson's sentencing was delayed 10 times since he pleaded guilty in April 2006 to health care fraud, conspiracy and income tax evasion.

"The cost of medical insurance has become staggering, and conduct like mine only adds to that burden," Henderson said. "My actions are inexcusable."

From January 1995 through 2002, Henderson billed Highmark for services never performed on patients of the now-closed Burrell Chiropractic Clinic in Lower Burrell. Fifteen other people were charged, although Assistant U.S. Attorney James Garrett said the scheme might have involved as many as 40 people.

"It was an industry, a factory, of rip-off," Garrett said.

Determining exactly how much money Henderson pocketed is impossible, Garrett said, because of a sizable divorce settlement from his first wife, unknown amounts of money used to support a car dealership and certain assets -- such as a vacation home in Emlenton -- being transferred out of Henderson's name.

"We can certainly say the defendant had the enjoyment of the money," Garrett said, "and lived very, very well, in a manner that was fueled by his cynical, abusive scheme."

In addition to his vacation home, Henderson owned houses in Murrysville, Monroeville and O'Hara, drove a fleet of luxury cars and golfed at Hill Crest Country Club in Lower Burrell.

Full story