Doctor, office manager swept up in massive fraud investigation

PHILADELPHIA » Two Delaware County residents are among the latest arrests in a sweeping nationwide health care fraud investigation that has so far charged 345 defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals.

“Doctors and medical professionals are supposed to put their patients’ needs first,” said Easter District of Pennsylvania U.S. Attorney William McSwain in a release. “When they don’t, and instead try to rip off the system, my office will take forceful action in order to punish and deter wrongdoers.”

Charged this week were Dr. Steven J. Valentino, 63, of Haverford, office manager Michele Miller, 51, of Swarthmore, and pharmacy owner Leah Afolabi, 46, of Missouri City, Texas.

Valentino operated an osteopathic practice with locations in King of Prussia and Sewell, N.J., according to an indictment unsealed Tuesday. Miller owned Miller Healthcare Consulting LLC and has also worked for Valentino since at least 2013, the indictment says.

From May 2013 through July 2017, Afolabi allegedly paid kickbacks to two other unnamed individuals in return for referrals for prescriptions of expensive “compounded medications,” including for pain creams written by Valentino. The two unnamed individuals in turn paid Valentino and Miller for prescriptions that were sent to Afolabi’s MedX Pharmacy in Houston, according to the indictment.

Afolabi allegedly billed the Department of Labor-Office Workers’ Compensation Program $2.5 million over the course of the scheme for prescriptions written by Valentino, of which the DOL

OWCP paid out approximately $1.1 million. Another $63,000 in Medicare claims based on Valentino’s prescriptions was also paid in full, according to the indictment.

“Investigating alleged health care fraud offenses against U.S. Department of Labor programs is an important mission of the Office of Inspector General,” said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, DOL Office of Inspector General. “We will continue to work diligently with our law enforcement partners to hold accountable those who seek to defraud DOL programs and siphon taxpayer funds for personal gain.”

Each of the defendants is charged with one count of conspiracy to defraud and receive kickbacks, and two counts of paying and receiving kickbacks – aiding and abetting.

Valentino was released on a $100,000 bond and Miller was released on a $50,000 bond Tuesday with certain restrictions. Attorneys Kevin Raphael, representing Valentino, and Joshua Hill, representing Miller, could not be reached for comment late Wednesday.

Department of Justice trial attorney Debra Jaroslawicz is prosecuting.