Ky. Man Sentenced in Medical Scam

December 17, 2004

Gregory Van Tatenhove, United States Attorney for the Eastern District of Kentucky, and Dara Corrigan, Acting Inspector General for the U.S. Department of Health and Human Services jointly announced this week that John Shaw, 58, of Paintsville, Kentucky, was sentenced in United States District Court, Ashland, Kentucky, by United States District Judge David Bunning.

Shaw, is the owner and operator of Med-Con, an oxygen supply business which receives payments from Medicare, a federally funded health care program, for furnishing oxygen to approved patients.

In September of 2004, Shaw entered a plea of guilty to 10 counts of making kickbacks to a doctor and two of his associates for falsifying oxygen tests results on patients and for referring those same patients to Med-Con, Shaw’s business. The doctor, who was is no longer in practice, maintained an office in Martin, Kentucky. During 2000 and 2001, the kickbacks totaled $73,130.00.

Shaw, who is reportedly in seriously failing health, was sentenced to a period of six months home confinement, and ordered to pay restitution in the sum of $354,000 to Medicare.

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