Pike County rehabilitation center owner accused of scheming patients out of money

Published: Nov. 20, 2020 at 2:39 PM EST
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PIKE COUNTY, Ky. (WYMT) - The owner of several rehabilitation centers in Pike, Floyd, and Harlan Counties was indicted in federal court earlier this week on Medicaid fraud.

Eugene Sisco III of Pikeville was charged with devising a scheme to get money from health care providers.

Sisco operated Renew Addiction Treatment Clinic, LLC. The business was an outpatient substance abuse disorder clinic that served patients in Floyd, Harlan, and Pike counties. According to court documents, the business also went by “Behavioral Health Professionals.” The documents also say that Renew was an enrolled provider in the Medicaid program. Its parent organization was Alcohol & Drug Abuse Prevention & Treatment Specialties, LLC, which was also owned and operated by Sisco.

In July, Sisco was arrested for a DUI.

It was recently discovered that Sisco would cash charge patients for services and bill the Medicaid program for the same services. The indictment alleges the wire fraud happened from around May 10th, 2016 to October 1st, 2019. The indictment goes on to state the health care fraud allegedly occurred from January 1st, 2016 through at least February 18th, 2020.

When questioned, Sisco would lie and say services such as counseling or urine drug testing were not covered by Medicaid.

Federal search warrants were also executed on five of Sisco’s businesses in February.

Sisco is accused of obtaining more than $3,000,000 from patient cash payments.

He is scheduled to make a video appearance in court on December 7th, 2020.

Sisco now faces up to 20 years in prison, for wire fraud, and has to hand over any property that was obtained by the illegally made funds and a fine of $250,000, and up to three years of supervised release.

Sisco also faces up to 10 years in prison and a fine up to $250,000 for the healthcare fraud charge. This also includes up to three years of supervised release.

To see the indictment, click here and here.

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