Austin Businesswoman Sentenced to Federal Prison for Health Care Fraud

(Press Release) In Austin, Texas, 37–year-old Abby Lindemann Johnson, owner of Pain Management Solutions, a licensed Durable Medical Equipment provider, was sentenced to 36 months in federal prison for her role in a health care fraud scheme with an estimated intended loss of more than $1 million, announced Acting United States Attorney Richard L. Durbin, Jr.

In addition to the prison term, United States District Judge Sam Sparks ordered that Johnson pay $846,171.12 restitution to the government and be placed on supervised release for a period of three years after completing her prison term.

On February 5, 2015, Johnson pleaded guilty to one count of health care fraud.  Johnson, admittedly, submitted numerous fraudulent bills for payment to the Department of Labor – Office of Workers Compensation Programs between January 2011 and May 2014 for reusable adhesive pads used with electrical nerve stimulators.  Those items were never delivered to patients.

An investigation by the Department of Labor – Office of Inspector General (OIG) and the United States Postal Inspection Service was initiated after a patient inquired about an Explanation of Benefits received in the mail that showed the Department of Labor was being billed for items that the patient never received.

This case was investigated by the Department of Labor – OIG, the United States Postal Inspection Service, and the Federal Bureau of Investigation.  This case was prosecuted by Assistant U.S. Attorneys Dan Guess and Daniel Castillo for the Western District of Texas.