U. S. Attorney Sayler A. Fleming | U.S. Department of Justice
The 25th patient involved in a disability fraud conspiracy linked to a chiropractic office in Jefferson County, Missouri, has been sentenced. This sentencing is part of an ongoing investigation into the multi-million dollar fraud scheme. Six additional patients are scheduled for sentencing next year.
U.S. District Judge Stephen R. Clark sentenced Donald Furrer, aged 67, to one year of probation. Before his sentencing, Furrer repaid nearly $462,000 that he had fraudulently obtained from the Social Security Administration’s Disability Trust Fund and private insurance providers by falsely claiming disability.
Thomas G. Hobbs and Vivian Carbone-Hobbs, the chiropractors who owned PowerMed Inc., are currently serving four-year prison terms. Hobbs was ordered to repay $4.3 million, while Carbone-Hobbs must repay $16.4 million.
Christina Barrera, an employee at PowerMed Inc., received a 14-month prison sentence. Another employee, Clarissa Pogue, was sentenced to five years of probation with six months of house arrest.
Several patients were employed at Anheuser-Busch or were spouses of other defendants. Their sentences ranged from one year of probation to a 15-month imprisonment term given to Elizabeth Guetersloh. All individuals involved have been ordered to repay amounts ranging from $47,087 to over $470,000.
James Ralston received a five-year probation sentence and was ordered to repay more than $2.1 million. As a former union steward at Anheuser-Busch, he referred co-workers and coached them on falsifying their disability applications.
Hobbs charged substantial fees for preparing disability forms and coaching patients on how to misrepresent their abilities in daily tasks such as lifting and walking. Evidence presented during trials showed that some patients paid up to $13,000 for PowerMed's services related to various disability claims options.
Despite claiming disabilities that prevented work or basic life functions, many PowerMed patients engaged in activities like traveling internationally and purchasing new homes with the fraudulent funds.
U.S. Attorney Sayler A. Fleming stated: “This investigation is ongoing but has already resulted in convictions of 31 people as well as the recovery of more than $6 million that will go to the Social Security Administration and the private insurers who were defrauded.”
Jason Albers from the Social Security Administration Office commented: “Donald Furrer made false statements... This sentence holds him accountable for his criminal behavior.” Greg Heeb from the FBI added: “I commend our agents and prosecutors who successfully unraveled such a large conspiracy.”
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation with prosecution led by Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke, and Gwendolyn Carroll.
For suspicions regarding fraud involving the Disability Insurance Benefit Program, contact can be made through the Social Security Administration Office of Inspector General Hotline at 1-800-269-0271 or via their website.
