Media Advisory: April 20, 2009

Cleveland Chiropractor Sentenced Following BWC Fraud Investigation

Dr. Thomas Kavounas found guilty of improper billing, threatening BWC agents

COLUMBUS – A Cleveland chiropractor who has been under investigation by the Ohio Bureau of Workers’ Compensation’s (BWC) special investigations department (SID) was sentenced today after pleading guilty to workers’ compensation fraud and intimidation. Dr. Thomas Kavounas was sentenced to six months in jail suspended, two years of community control and 50 hours of community work service. Kavounas, of the Neck, Back & Body Accident & Injury Therapy Clinic, located at 13357 Lorain Road in Cleveland, has been under investigation since June for billing for services not rendered. BWC has also been investigating Kavounas’ business partner, Dr. Richard Mulcahy, for allegedly treating injured workers after he had been decertified as a workers’ compensation medical provider due to a previous felony conviction.

“Medical provider fraud against the workers’ compensation system is a serious offense that not only is a crime, but can place injured workers in danger of not receiving the appropriate care they need to return to work,” said Tom Wersell, director of the SID. “Identifying and prosecuting this kind of fraud is important for maintaining a pool of quality medical providers whose chief concerns lie with the health and wellbeing of injured workers.”

After receiving an allegation, SID conducted surveillance at the clinic and found that on several occasions, BWC patients were being treated when Dr. Mulcahy was the only physician in the office. A review of the treatment notes and bills submitted for those dates of surveillance showed bills and treatment notes were submitted to BWC reflecting that Dr. Kavounas was the treating physician.

Following the surveillance on the clinic, two undercover agents posing as injured workers visited the office for treatment. As suspected, the investigators discovered that the clinic was billing for services by Dr. Kavounas when the actual examination was performed by Dr. Mulcahy. Investigators also determined the partners were billing for no-show appointments and for services that were never received by the undercover agents.

With assistance from the Cleveland Police Department and the Office of the Ohio Attorney General, investigators conducted a search warrant on December 10, 2008. Following the search warrant, Dr. Kavounas was arrested after making several threatening phone calls to BWC agents. On March 18, he pleaded guilty to one count of workers’ compensation fraud, a fifth-degree felony and one count of intimidation, a first-degree misdemeanor. Dr. Kavounas was also ordered to pay $1,600 in restitution and $4,800 in investigative costs.

The SID continues its investigation of Dr. Mulcahy.

To report suspected workers’ compensation fraud, visit ohiobwc.com, or call 1-800-OHIOBWC.

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