Former NBA Players Netted in $4M Healthcare Fraud Scheme

Eighteen former NBA players and a former spouse have been implicated in a $3.9 million healthcare fraud scheme that netted them nearly $2.5 million in fraudulent reimbursement claims for medical services they never received.

Earlier this month, the U.S. Attorney for the Southern District of New York, along with several other agencies, announced the unsealing of an indictment charging them with conspiracy to commit healthcare fraud and wire fraud, in connection with a scheme to defraud the National Basketball Association’s Health and Welfare Benefit Plan, which provides benefits to both active and former NBA players.

The indictment alleges that from about 2017 until 2020, the players engaged in a scheme to defraud the plan by submitting, or causing to be submitted, fraudulent claims for reimbursement for both medical and dental services that never were provided.

It was alleged that Terrence Williams, a former Louisville player who was drafted in 2009 by the New Jersey Nets and who went on to play for several more NBA teams, orchestrated the scheme and recruited others to take part in it by offering to provide them with false invoices to support their fraudulent claims in exchange for kickbacks. It’s alleged that Williams received approximately $230,000 in kickbacks.

The fake invoices were from a chiropractor’s office in California and were fabricated by people Williams was alleged to have worked with. It’s also alleged that he obtained fraudulent invoices from a dentist affiliated with offices in Beverly Hills, Calif. and a doctor at a wellness office in Washington State.

The invoices purported to document that the players, and in some cases members of their families, received medical and dental services that they actually had not received. And, in fact, many of them did not even live in the areas where the services were allegedly provided.

For example, the indictment alleges that Gregory Smith submitted a claim that he received root canals and crowns on eight teeth for $47,900 at a time when he was actually out of town playing basketball. Another player, Ronald Glen Davis, also submitted claims for eight crowns totaling $27,200 at a time when he was out of town. Other players submitted claims for procedures on the same teeth on the same day.

Eventually, the claims of many of those involved in the alleged scheme were denied and the players were asked to repay the money. Some did, while others did not.

Each of those allegedly involved in the scheme have been charged with one count of conspiracy to commit healthcare fraud and wire fraud, which carries a maximum sentence of 20 years in prison. Williams also is charged with one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.

The Health Law Offices of Anthony C. Vitale represents clients who are charged with healthcare fraud. We are here to assist. feel free to contact us at 305-358-4500 or info@vitalehealthlaw.com