Wichita man sentenced to pay $15 million for health insurance

WICHITA, Kan. (KSNW) – A Wichita man has been ordered to pay over $15 million after US Attorneys said he violated the False Claims Act (FCA).

Timothy Warren, 58, is a Wichita-based chiropractor and owner of Titan Medical Compliance, LLC. The ruling is the latest action in a national investigation into an illegal P-Stim electroacupuncture device billing system.

US Attorney’s Office Says Federal Health Programs Don’t Reimburse P-Stim Devices The Eastern District of Pennsylvania has directed the national Department of Justice’s efforts to prosecute and resolve various FCA cases against P-Stim vendors, marketers, distributors and programmers.

According to the complaint, Warren is accused of falsely advertising P-Stim devices as reimbursable by Medicare and other federal insurers. Investigators allege that Warren advertised Titan as a compliance company, and as a result, P-Stim device marketers and distributors paid Warren to provide medical coding guidelines.

KSN has reached out to Warren and Titan Medical Center and is awaiting a response.

US prosecutors say that as of 2014, Warren has been advertising P-Stim devices as recoverable by federal insurers and providing instructions on which codes to bill for. Those codes resulted in “a large amount of reimbursement,” but investigators say those reimbursements were for various surgically implanted neurostimulators used to treat chronic pain.

US Attorneys say Warren knew P-Stim devices were not reimbursable by federal health programs but continued to promote the devices anyway.

The US Attorney for the Eastern District of Pennsylvania filed a complaint against Warren and Titan on October 14, 2021. She also denied a request by Warren and Titan to assign the case to the District of Kansas.

US prosecutors say they sought a default judgment after Warren and Titan’s attorney backed down and didn’t respond.

A judge granted the request and entered a default judgment, which said the US Attorney’s office had “made identifiable claims under the False Claims Act against the defendants, and the defendants have failed to present a valid defense.”

U.S. Attorneys say Warren caused about 1,200 claims to be falsely filed with state health programs in violation of the FCA. A judge ordered Warren and Titan to pay statutory penalties totaling $15,270,066.

In August 2022, Warren and Titan were charged with fraud after a federal grand jury indicted him for crimes related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

He is accused of fraudulently obtaining approximately $145,800 in CARES Act Paycheck Protection Program (PPP) loans from two banks and then using a third bank to conceal the funds.

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