Dr. Eric Edward Haeger of Brewster, Washington, was sentenced on March 25 to one year and a day in federal prison, a $60,000 fine, and restitution of $349,272.79 after pleading guilty to adulterating and misbranding medical devices with intent to defraud or mislead. United States District Court Judge Rebecca L. Pennell also ordered a one-year term of supervised release following Haeger's imprisonment.
The case highlights concerns about patient safety and trust in the healthcare system after Haeger provided used and recalled CPAP and BiPAP devices to Medicaid patients while falsely representing them as new.
According to court documents, between July 2021 and July 2023, Haeger purchased over 500 used and recalled respiratory devices through online resellers. He directed others—including his own children—to remove foam from these machines using tools such as screwdrivers before reassembling them outside proper clean-room conditions. These altered devices were then distributed through Central Washington Medical Associates under his supervision to Medicaid patients in Washington State.
Clinic staff billed Medicaid for these used machines by fraudulently claiming they were new and fully functional. The court determined that Haeger had adulterated at least 440 devices that were subsequently billed for more than $600,000; he received payments totaling $439,272.79 from Medicaid for these claims.
At sentencing, Judge Pennell said Haeger's conduct was ongoing and extensive: "Judge Pennell acknowledged Haeger’s conduct was ongoing and extensive and that he continued to blame others for his own decisions." She further recognized the potential harm caused by contamination risks from the altered equipment: "Judge Pennell also stressed how Haeger’s conduct served to undermine confidence in medical professionals... when they are not sure they can trust their own doctors."
First Assistant United States Attorney Pete Serrano said: “Dr. Haeger violated the trust of his patients who were misled into believing Dr. Haeger was providing them with safe and reliable medical equipment... Conduct that puts profits over patients is egregious, and my office will continue to prosecute such cases.”
Special Agent Robert Iwanicki of the FDA Office of Criminal Investigations stated: “The FDA is committed to protecting patients from adulterated and misbranded medical devices that may compromise health and safety.” Robb Breeden from HHS-OIG added: “Putting recalled and unsafe medical devices into the hands of vulnerable patients is an egregious violation of the trust our healthcare system relies on.”
Washington Attorney General Nick Brown commented: “This is a win for patient safety... This case exemplifies the great work our team is doing in collaboration with our federal partners...” FBI Special Agent W. Mike Herrington said: “As a physician, Dr. Haeger knew he had a responsibility... Instead... he took advantage of their vulnerability for his own gain.”
The investigation involved several agencies including the Food & Drug Administration Office of Criminal Investigations; Washington State Medicaid Fraud Control Division; Health & Human Services Office of Inspector General; Federal Bureau of Investigation; with prosecution led by Assistant United States Attorney Jeremy J. Kelley.
