McFarland Will Receive Up To Ten Years In Jail For Medical Billing Fraud

Recently, Ronald A. McFarland agreed that he would plead guilty to a charge of embezzlement. McFarland was the head of Medical Alliance Partners LLC and Verimed Services Inc, two companies that are based out of State colleges. McFarland was charged with embezzling a total of $2.46 million of health insurance reimbursements. The reimbursements came from cancer treatment centers.

On Thursday, February 24th, 2011, the Williamsport US Attorney’s Office submitted a plea agreement charging the fifty three year old citizen of Bellefonte with embezzlement. He makes a good example of why experts in the industry recommend a medical billing lawyer.

The companies that he presided over provided billing services to Oaktree Cancer Care Inc and Rosewood Cancer Care Inc, companies which ran out of East Liverpool, Ohio and Pittsburgh respectively. Both were radiation treatment centers for cancer patients.

The documents filed by the US Attorney’s Office state that McFarland transferred a total of $2.46 million to bank accounts that were under his control. Verimed, a company under his control, was supposed to make records of checks sent to it, and forward the checks to the cancer treatment centers. The documents claim that McFarland attempted to hide the embezzlement by entering false information into records, something which a medical billing lawyer would have advised against to be sure.

As a part of the plea agreement, McFarland will be required to pay a restitution of $2.46 million, a cost far lower that would have been needed for a medical billing lawyer.

The investigation began in Fall of 2010 when a state police fire marshal from Indiana County filed a warrant for McFarland’s credit report. The warrant was filed because the owners of Oaktree and Rosewood lost their home to a fire that occurred the night before they were scheduled to meet with McFarland to talk about issues regarding their accounts. A medical billing lawyer may have been able to prevent this issue.

The owners, Paul Castro and his wife Marcy Colkitt, lost their home to a fire that reportedly started at a desktop in their home’s basement. At this time, further information about the investigation into the possibility of arson have not been released to the general public.

The investigation into McFarland has ended according to Stephen Collins, a Special Agent working for the the FBI’s State College office. McFarland agreed that he would plead guilty at his next court date. He will receive his sentence at some point in the next few months.

As a part of his sentence, McFarland will receive up to ten years in jail. After serving jail time, he may receive up to three years of supervision, in addition to a fine of $250,000. The fine is separate from the restitution of $2.46 million. All of this might have been prevented by a medical billing lawyer.


May 9th, 2011