Michele Beckwith Acting U.S. Attorney | U.S. Attorney for the Eastern District of California
Zachary J. Lipman, MD, from Chico, and Michael Woo-Ming, MD, from Murrieta have agreed to settlements totaling $375,000 with the United States government. The settlements address allegations related to a fraud scheme involving false claims submitted to Medicare. Acting U.S. Attorney Michele Beckwith made the announcement.
The fraudulent activities were linked to Riverside County chiropractor Kevin Brown. Brown allegedly orchestrated a scheme through his companies to seek reimbursement from Medicare for neurostimulators that were not surgically implanted as claimed. Instead, they used a disposable device called "Stivax," which was taped to patients' ears and is not eligible for Medicare reimbursement.
Dr. Lipman's settlement of $290,000 resolves allegations that he received kickbacks from Brown for referring patients for Stivax devices funded by Medicare. Dr. Woo-Ming's $85,000 settlement addresses claims that his companies falsely billed Medicare for neurostimulators supposedly implanted.
“These physicians took part in a fraud scheme at the expense of hardworking taxpayers,” stated Acting U.S. Attorney Beckwith. She emphasized her office's dedication to addressing such frauds impacting federal health care programs like Medicare.
Acting Special Agent in Charge Robb R. Breeden of HHS-OIG noted the potential negative impact of improper financial arrangements on medical judgment and decision-making processes: “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General, with Assistant U.S. Attorney Emilia P.E. Morris handling the case for the government.
Settlement agreements are available through linked documents:
lipman_settlement_agreement_executed_10.25.24.pdf
woo-ming_settlement_agreement-executed_3.5.25.pdf
brown_settlement_agreement-_executed_07.10.24_0.pdf
