Clare E. Connors, U.S. Attorney | U.S. Attorney for the District of Hawaii
Stephen Timothy Wells, a resident of Waialua and owner of Oahu Spine and Rehab, has been sentenced to nine months in federal prison for health care fraud. The sentence was handed down by U.S. District Judge Jill A. Otake in Honolulu. Wells will also serve three years of supervised release and pay restitution amounting to $392,157.20 to TRICARE and Medicare.
Wells admitted to submitting false claims for physical therapy services to TRICARE and Medicare from July 2013 through early 2020. He employed individuals who were not trained or licensed as physical therapists, including massage therapists, athletic trainers, personal trainers, and others without any professional licenses or certifications. Despite knowing these individuals were unauthorized providers, Wells billed the programs as if licensed practitioners had rendered the services.
Acting United States Attorney Kenneth M. Sorenson stated, "Tens of billions of dollars are lost to health care fraud each year, robbing Americans of vitally needed quality health services." Sorenson emphasized that over nearly seven years, Wells attempted to exploit taxpayer-funded programs meant for military service members, their families, elderly and disabled Americans. He warned that such actions would lead to imprisonment upon being caught.
The investigation involved several agencies: the Defense Criminal Investigative Service; the Office of Inspector General of the Department of Health and Human Services; the Federal Bureau of Investigation; and the U.S. Department of Veteran Affairs Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Mohammad Khatib and Rebecca Perlmutter.
