3 Plead Not Guilty in Medicare Fraud

Three Southern California men, including a 75-year-old doctor, pleaded not guilty Monday to charges of taking part in a scam that authorities say billed Medicare for $2.6 million in unnecessary and often undelivered medical equipment.

Sumner Bohee, 75, of San Marino; Steve Jari, 53, of West Hollywood; and Keith Allison, 40, of Los Angeles were named in a 16-count federal indictment unsealed Friday after their arrests, according to the U.S. attorney’s office.

A fourth defendant who surrendered Monday, Bernard Townsend, 37, of Los Angeles was also named.

Each is charged with nine counts of health-care fraud, according to prosecutors. Bohee faces an additional four counts of taking kickbacks and three counts of money laundering.

Bohee and Allison are being held without bail, Jari is in custody in lieu of $250,000 bail and Townsend has been released on $50,000 bail.

The indictment alleges that Bohee allowed a physician’s assistant to examine patients referred by the three other defendants. Bohee then allegedly recommended that the patients receive motorized wheelchairs or hospital beds and allegedly signed certificates of medical necessity for them.

The certificates were then turned over to Vasu Deo, 43, of Van Nuys, who billed Medicare for about $2.6 million in fraudulent claims, according to the U.S. attorney’s office. The indictment claims that Deo, Jari, Allison and Townsend would then pay illegal kickbacks to Bohee.

Deo, who was allegedly paid about $1.15 million by Medicare, is expected to plead guilty Wednesday to four felony counts, prosecutors said.

Each count of health-care fraud carries a maximum possible sentence of 10 years in federal prison.