A federal grand jury in the District of Nevada indicted Stephen Dubin, M.D., 74, of Henderson, Nevada, on Aug. 5 for allegedly orchestrating a $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts applied to elderly patients.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division said, “This indictment exposes a scheme driven by greed, not medicine. As alleged, this provider exploited elderly patients by pushing costly and unnecessary medical procedures, then lied to Medicare to pocket millions of taxpayer dollars. Schemes like this drain Medicare of resources and impose substantial burdens on the taxpayers who fund it. Let this serve as a warning: any healthcare professional who tries to get rich at the expense of patient care can expect to face the same scrutiny—and the same consequences.”
First Assistant United States Attorney Sigal Chattah said, “Healthcare fraud is not a victimless crime; it steals vital resources from elderly and vulnerable citizens who truly need life-saving treatments. These defendants prioritized personal greed over patient care by weaponizing complex billing codes for advanced wound care products. As part of the West Coast Health Care Strike Force, our office, alongside our federal law enforcement partners, will continue to aggressively dismantle predatory schemes that target public healthcare programs.”
According to court documents and statements from investigators and prosecutors involved in the case—including FBI Special Agent in Charge Christopher S. Delzotto; Robb R. Breeden from HHS-OIG; and John Helsing from DCIS—Dubin procured expensive allografts through illegal kickbacks and bribes before applying them without medical necessity to elderly patients including those in hospice care. Prosecutors allege that Dubin falsified patient records to conceal lack of necessity and used proceeds from his actions for personal gain such as commissioning multi-million-dollar yachts.
The indictment charges Dubin with conspiracy to commit health care fraud and five counts of health care fraud; if convicted he faces up to 10 years in prison per count.
The U.S. Attorney for the District of Nevada enforces federal laws across Nevada’s 17 counties through collaboration with law enforcement agencies at multiple levels while advancing community wellness initiatives, according to its official website.
The Department of Justice recently established both a National Fraud Enforcement Division focused on investigating fraud against Americans—including support for President Trump’s Task Force—and a West Coast Health Care Fraud Strike Force covering Arizona, Nevada, and Northern California districts. Since 2007 these efforts have resulted in more than 6,200 defendants charged with collectively billing over $45 billion against public health programs nationwide.
Authorities emphasize that an indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt.