PROVIDENCE – A Providence chiropractor today admitted that he created and executed a scheme to defraud a health care benefits program and that he failed to pay taxes on some of the income he received from his business.

Eugene Kramer, 51, sole owner of New England Spine and Disc Center, admitted to the court that he committed health care fraud by billing for days a patient did not attend treatment, for treatment not provided, and by falsifying medical notes and documentation to support a nonexistent personal injury claim.

As part of the scheme, from January 1, 2018, to December 31, 2018, Kramer provided invoices for chiropractic treatment to an attorney, who then, in order to support a patient’s bodily injury claim, provided those invoices to an automobile insurance company in Rhode Island. To bolster the claim, Kramer created falsified medical notes and documentation.

According to court documents, an individual electronically monitored by the FBI visited Kramer’s office on 15 occasions for chiropractic treatment, under the pretext of having been involved in an automobile accident. In most instances little or no treatment was provided and few if any medical notes were taken. At no time did Kramer provide the person with a diagnosis or discuss a treatment plan. The individual was emailed a package requesting a monetary settlement in connection with a supposed injury claim to Progressive Insurance requesting, among other things, reimbursement for chiropractic services.

In addition to admitting to executing the health care fraud scheme, Kramer admitted that for tax years 2015, 2016, and 2017, he failed to report a portion of his personal income, resulting in him owing the IRS $66,914.

Appearing today before U.S. District Court William E. Smith, Kramer pleaded guilty to one count each of health care fraud and filing a false tax return, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

Kramer is scheduled to be sentenced on October 2, 2020.

Health care fraud is punishable by statutory penalties of up to 10 years in federal prison, a fine of $250,000, and three years of supervised release. Filing a false tax return is punishable by up to three years in prison, a fine of $100,000, and one year of supervised release.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by the FBI and IRS Criminal Investigation.

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PROVIDENCE – A Providence chiropractor has agreed to plead guilty to charges that he allegedly executed a scheme to defraud health care benefits programs and that he allegedly failed to pay taxes to the IRS for some of the income he received from his business, according to documents filed in federal court in Providence.

It is alleged that Eugene Kramer, 50, sole owner of New England Spine and Disc Center, devised a scheme to defraud insurance companies by billing for days patients did not attend treatment, for treatment not provided, and by falsifying medical notes and documentation to support nonexistent personal injury claims.

It is alleged in court documents that from January 1, 2018, to December 31, 2018, Kramer provided invoices for chiropractic treatment to various attorneys, who then, in order to support a patient’s bodily injury claim, provided those invoices to various automobile insurance companies in Rhode Island. At times, Kramer allegedly provided falsified medical notes and documentation.

According to court documents, an individual assisting the FBI in the investigation of Kramer’s alleged criminal activity, visited Kramer’s office on 15 occasions for chiropractic treatment, under the pretext of having been involved in an automobile accident. It is alleged that in most instances little or no treatment was provided and few if any medical notes were taken. At no time did Kramer provide the person with a diagnosis or discuss a treatment plan. Nearly all of the patient’s visits were electronically monitored by the FBI.

According to court documents, the individual who visited Kramer’s office in an undercover capacity was allegedly emailed a package requesting a monetary settlement in connection with the individual’s supposed injury claim to Progressive Insurance requesting, among other things, reimbursement for chiropractic services.

According to court documents, it is alleged that for tax years 2015, 2016, and 2017, Kramer failed to report a portion of his personal income, resulting in him owing the IRS $66,914.

An information and plea agreement filed in U.S. District Court charges Kramer with health care fraud and filing a false tax return, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

Health care fraud is punishable by statutory penalties of up to 10 years in federal prison, a fine of $250,000, and 3 years’ supervised release. False tax return is punishable by up to 3 years in prison, a fine of $100,000, and 1 year supervised release.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by the FBI and IRS Criminal Investigation.

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