DALLAS—Stanley Thaw, 70, and his wife, Kernell Thaw, 49, both of Frisco, Texas, and Michael Kincaid, 55, of Plano, Texas, have been charged in an indictment, unsealed late yesterday, on charges including conspiracy, health care fraud, making false statements to a financial institution, and engaging in illegal monetary transactions with fraud proceeds, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. They are expected to make their initial appearances this afternoon in federal court in Dallas, before U.S. Magistrate Judge Paul D. Stickney.
Stanley and Kernell Shaw and Michael Kincaid owned various hyperbaric oxygen therapy (HBOT) companies in North Texas, Houston, and San Antonio, Texas. The HBOT entities employed physicians to supervise the provision of HBOT to federal health care program and private-pay patients. The indictment alleges that from January 2008 to June 2011, Stanley Thaw and Michael Kincaid engaged in a scheme to defraud Medicare by double-billing for the physician supervision and attendance of HBOT-related services.
The false statements charges involve properties in Frisco and Dallas, Texas that Stanley and Kernell Thaw purchased from a local home builder. The indictment alleges that the Thaws made material false statements to a financial institution to obtain a $1.3 million residential loan. The indictment contends had the financial institution known the Thaws’ representations were false, it would have rejected their loan.
The indictment specifically charges Stanley Thaw and Michael Kincaid each with one count of conspiracy to commit health care fraud and five substantive counts of health care fraud. Stanley and Kernell Thaw each are charged with three counts of making false statements to a financial institution. Each of the three defendants is charged with one count of money laundering.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count and each of the health care fraud counts carries a maximum statutory sentence of 10 years in prison and a $250,000 fine. Upon conviction, each of the false statements counts carries a maximum statutory sentence of 30 years in prison and a $1 million fine. Upon conviction, each of the money laundering counts can result in up to 10 years in prison and a $250,000 fine. The indictment also includes a forfeiture allegation, which would require Stanley Thaw and Michael Kincaid to forfeit all proceeds traceable to their offenses and the more than $32,000 that was seized from an account at a local bank.
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