Pubdate: Wed, 08 Jan 2003
Source: Sun News (Myrtle Beach, SC)
Copyright: 2003 Sun Publishing Co.
Contact:  http://www.myrtlebeachonline.com/mld/sunnews/
Details: http://www.mapinc.org/media/987
Author: Kenneth A. Gailliard

DOCTOR GUILTY IN OXYCONTIN CASE

Man Who Owned MB Clinic To Be Sentenced For 3 Counts

A former Myrtle Beach doctor admitted Tuesday he committed health care 
fraud, laundered money and illegally distributed narcotics from his clinic 
between 1997 and 2001.

Dr. D. Michael Woodward, 45, pleaded guilty in U.S. District Court to one 
count each of money laundering, conspiracy to distribute Oxycodone, the 
primary ingredient in OxyContin, and health care fraud. He could face a 
maximum sentence of 20 years for each charge and fines totaling about $3.25 
million. He had faced a 93-count indictment.

The plea agreement Tuesday came after two days of discussions, his lawyer 
William D. Watkins of Columbia said during the plea hearing.

In exchange for the guilty plea, Woodward agreed to forfeit his assets, 
including $640,288 from the sale of the clinic, 11 guns and boxes of 
ammunition. He also must pay more than $704,000 in restitution to Medicare, 
Medicaid, Blue Cross and TriCare.

Woodward owned Myrtle Beach Comprehensive Care & Pain Management Clinic, 
where authorities say he and others sold controlled substances outside the 
usual course of medical practices and forced unnecessary tests on patients 
to submit fraudulent claims to Medicare and other health care plans.

A 13-page plea agreement also requires that Woodward be truthful with 
prosecutors and give them substantial assistance in their investigation of 
the case, or the deal becomes null and void.

Assistant U.S. Attorney William E. Day II said Tuesday that Woodward knew 
or should have known his victims were vulnerable.

"This case is extremely unusual," Day said. "I know of no other case in the 
country with this many people charged with these types of offenses."

Woodward was one of seven Myrtle Beach doctors charged in a conspiracy to 
illegally distribute narcotics, such as OxyContin.

The plea agreement refers to Woodward as a leader in this criminal activity.

Day said between June 1997 and June 2001, Woodward and the others operated 
the clinic to illegally distribute Oxycodone, Hydrocodone, Diazepam, 
Alprazolam and Ambien outside the usual course of medical practice.

Also facing charges are Michael D. Jackson, Deborah B. Sutherland, Deborah 
S. Bordeaux, Ricardo U. Alerre, Windy B. Suggs, Thomas P. Devlin and 
Venkata R. Pulivarthi. Suggs was an employee at the clinic. Another 
suspect, Benjamin R. Moore, committed suicide after pleading guilty in the 
case. The defendants allegedly gave narcotics to patients after giving them 
little or no physical exam.

Some were kept on the medication for years, Day said.

Woodward also designed advertisements to attract people to the clinic so he 
could distribute narcotics, Day said.

In addition, he said, Woodward was behind a scheme to bill Medicare and 
other third-party insurers for unnecessary tests.

Woodward will be sentenced after a presentence report is completed by the 
U.S. Probation Office. Trial for Woodward and the remaining defendants is 
set for Jan. 27.
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