FIRST HIPAA TRIAL ENDS IN CONVICTION

From the Vinson Elkins law firm (www.velaw.com):

HIPAA Trial

In the first HIPAA case to go to trial, a federal jury in Florida found Fernando Ferrer, Jr. guilty of eight criminal counts, including identity theft, computer fraud, Medicare fraud, and a HIPAA violation for the wrongful disclosure of individually identifiable health information. Notably, this first ever HIPAA conviction is against an individual that is not a “covered entity.” In this case, the U.S. Attorney alleged that Ferrer purchased stolen protected health information (PHI) from his cousin, Isis Machado, who had access to the information through her employment at a Florida clinic. From May 2005 to June 2006, Ferrer wrongfully obtained the names, Social Security numbers and Medicare numbers of approximately 1,100 individuals. Ferrer then used the stolen PHI to submit more than $7 million in false Medicare claims with approximately $2.5 million paid to providers and suppliers. Machado pled guilty for her involvement in the scheme on January 12 and testified against Ferrer during his trial. Ferrer's sentencing is scheduled for April 27, 2007. Ferrer faces a maximum of 30 years in prison and up to $1,750,000 in fines, including 10 years and a $250,000 fine for the HIPAA violation. Reporter, Amanda Borichevsky, Austin, 512.542.8844 or aborichevsky@velaw.com.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.