Founders, investors, physicians at Dallas hospital indicted

DALLAS (AP) — Nearly two dozen people associated with a bankrupt physician-owned North Dallas luxury hospital have been indicted in what authorities described as a massive bribery and kickback conspiracy.

The indictment unsealed Thursday in Dallas accuses 21 executives and physicians with Forest Park Medical Center of paying and taking bribes and kickbacks for patient referrals with high-reimbursement private medical insurance. Owners, managers and employees also are accused of trying to sell to other facilities for cash patients with lower-paying insurance, such as Medicare and Medicaid.

A U.S. attorney’s statement says bribes and kickbacks paid and received totaled about $40 million. The 20-count indictment alleges that such inducements resulted in hospital billings to elite insurance plans of “well over” $500 million from 2009 to 2013. That included more than $10 million to the Defense Department health care program, more than $25 million to the workers’ compensation program for federal employees, and more than $60 million from the federal employees’ and retirees’ health care program. In return, it received $200 million in claim payments.

Forest Park was an out-of-network hospital that could set its own prices and receive generally greater reimbursements.

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The indictment also provides for the forfeiture of any property linked to the allegations.

The North Dallas hospital’s buildings have been sold to HCA North Texas for $125.4 million.

The case was investigated by the FBI, the U.S. Department of Labor Office of Inspector General, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Defense – Defense Criminal Investigative Service, the U.S. Office of Personnel Management Office of Inspector General, and Internal Revenue Service Criminal Investigation, with assistance from the Food and Drug Administration and the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Andrew Wirmani, Kate Pfeifle and Mark Tindall are prosecuting the case.

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The below-listed defendants are charged in the indictment:

Alan Andrew Beauchamp, 64, of Dallas

Richard Ferdinand Toussaint, Jr., 58, of Dallas

Wade Neal Barker, 51, of Dallas

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Wilton McPherson Burt, 61, of Costa Rica

Andrea Kay Smith, 37, of Rockwall

Carli Adele Hempel, 40, of Plano

Kelly Wade Loter, 48, of Dallas

Jackson Jacob, 53, of Murphy

Douglas Sung Won, 45, of Dallas

Michael Bassem Rimlawi, 45, of Dallas

David Daesung Kim, 54, of Southlake

William Daniel Nicholson IV, 46, of Dallas

Shawn Mark Henry, 46, of Fort Worth

Mrugeshkumar Kumar Shah, 42, of Garland

Gerald Peter Foox, 69, of Tyler

Frank Gonzales Jr., 41, of Midland

Israel Ortiz, 49, of Dallas

Iris Kathleen Forrest, 56, of Dallas

Andrew Jonathan Hillman, 40, of Dallas

Semyon Narosov, 51, of Dallas

Royce Vaughn Bicklein, 44, of San Antonio

Dr. Shawn Henry, 46, is an orthopedic surgeon with the Texas Back Institute in Fort Worth.

“We are aware of it (the indictment) but don’t have information at the this time,” said Deb Lief, chief operation officer for Texas Back Institute. “Patient care is what’s most important and that is what we are trying to concentrate on at this time.”

Bariatric surgeon Dr. David Kim, 54, operates Kim Bariatric Institute in Colleyville. He declined to comment.

FWBP’s Robert Francis and Marice Richter contributed to this report