Moore doctor found guilty of health care fraud

by Tom Blakey
The Moore American

OKLAHOMA CITY February 18, 2009 11:08 am

— Late Feb. 4, an Oklahoma City federal jury found Dr. Can D. Phung, 60, Moore, guilty of 53 counts of illegally dispensing thousands of tablets of controlled prescription drugs, health care fraud and obstruction of justice, according to John C. Richter, U.S. attorney for the Western District of Oklahoma.
“The rule of law applies to all,” Richter said. “As the verdict shows, this doctor violated his oath to heal in order to be simply a drug dealer of painkillers known for addictiveness and abuse. But he didn’t stand pat with just those crimes. Instead, he then billed the American taxpayer, through Medicaid, for his illegal drug dealing. And then, when he learned he was being investigated, sought to obstruct our investigation through falsifying patient records subpoenaed by the government.”
The trial last approximately four days. The jury deliberated for about 45 minutes before finding Phung guilty on all 53 counts. A sentencing date will be set by the court in about 90 days, officials said. Phung faces up to 20 years in prison and a fine of up to $1 million.
Phung was a licensed physician, practicing on Classen Boulevard in Oklahoma City. According to the evidence presented at trial, from September 2006 through April 2007, Phung dispensed thousands of tablets of scheduled prescription narcotics to individuals outside the usual course of accepted medical practice without legitimate medical purposes, including a pregnant woman and a patient he had never seen.
Richter said Phung issued prescriptions without conducting physical examinations, taking vital signs or ordering tests, and individuals who were addicted to the drugs knew they could see Phung and within minutes receive a prescription.
“Evidence showed that individuals were lined up outside his office before it opened in order to receive the prescriptions on a first come, first served basis,” Richter said.
The drugs Phung dispensed included hydrocodone in the form of Lortab; oxycodone in the form of Percocet; alprazolam, an anti-anxiety drug known as Xanax; Phentermine, a stimulant and appetite suppressant and Methylphenidate, a central nervous system stimulant known as Ritalin.
Phung submitted fraudulent claims for reimbursement to the Medicaid system, Richter said. Evidence showed Phung submitted claims on behalf of a patient never seen or treated, and on behalf of individuals for whom he claimed to have performed comprehensive examinations when, in fact, he had spent only minutes with the individual seeking the drugs, Richter said.
The jury also found that, after receiving a subpoena for patient records April 7, 2008, as part of the investigation, Phung falsified patient records with the intent to impede, obstruct and influence the investigation, Richter said.
Phung’s medical license was suspended in 2007 by the Oklahoma Board of Medical Licensure and Supervision. His application for reinstatement in 2008 was denied.
Richter commended the work of Assistant U.S. Attorneys Randal A. Sengel and Vicki Zemp Behenna, the Drug Enforcement Administration, Federal Bureau of Investigation and Health and Human Services Office of Inspector General.