Livonia Doctor and Patient Recruiters Charged in $18 M Illegal Distribution of Prescription Drugs

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https://www.justice.gov/usao-edmi/pr/livonia-doctor-and-patient-recruiters-charged-18-million-illegal-distribution

Department of Justice
U.S. Attorney’s Office
Eastern District of Michigan

FOR IMMEDIATE RELEASE
Tuesday, January 9, 2018

Livonia Doctor and Patient Recruiters Charged in $18 Million Illegal Distribution of Prescription Drugs and Health Care Fraud Scheme

An indictment was unsealed today charging Dr. Zongli Chang, M.D. and seven other individuals with conspiracy to illegally distribute prescription drugs, U.S. Attorney Matthew Schneider announced today. Chang is also charged with health care fraud.
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The indictment alleges that from January 2012 to May of 2017 (when the State of Michigan revoked Chang’s medical license), Chang and his coconspirators engaged in a large-scale drug diversion scheme. It is alleged that Chang abused his medical license by writing medically unnecessary and highly addictive controlled substance prescriptions in return for cash payments. Chang commonly wrote prescriptions for controlled substances, to include Hydrocodone-Acetaminophen, Oxycodone HCl, Alprazolam, Carisoprodol and Promethazine/codeine syrup. According to the indictment, Chang prescribed more than 2,700,000 dosage units of Schedule II, III and IV controlled substances during the course of the conspiracy. These controlled substances had a conservative street value in excess of $18,000,000. Agents seized more than $600,000 in cash during a search of Chang’s Novi home.

According to the indictment, Chang relied upon “patient recruiters” to bring “fake patients” to his office. These recruiters paid cash to acquaintances to act as patients of Dr. Chang. The recruiters paid Chang cash at each office visit for the prescriptions provided. The recruiters also paid cash to the “fake patients” for appearing for the medical visits. After a cursory examination or no examination at all, Chang always prescribed the requested controlled substances. Darryl Parker, Tye Chandler, Karen Hall, Deangelo Givhan, Yolanda Cannon, Melvin McGuire and Khary Tremble all brought numerous fake patients to Chang’s office and ultimately took control of the controlled substances prescribed by Chang sale for illegal distribution in Michigan and elsewhere.

In addition to the drug diversion charges, Chang faces three counts of health care fraud for billing Medicare for services not provided. The indictment further seeks to forfeit all proceeds of Chang’s illegal activity, including $603,136 in cash seized from his home.
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