Grand Rapids, Michigan – April 26, 2007 – United States Attorney Charles R. Gross announced that this evening, after a full day of deliberation, Dr. Robert W. Stokes, D.O., age 55, a licensed, board certified dermatologist who practices in Grand Rapids, Michigan, was convicted by a jury of 31 counts of health care fraud, in violation of Title 18, United States Code, Section 1347. Dr. Stokes faces a maximum penalty of ten years’ imprisonment and a $250,000 fine for each count. A sentencing date has not yet been set.

The investigation began when federal agents obtained information from patient complaints and audits by Blue Cross Blue Shield of Michigan (BCBSM) and Medicare concerning the billing practices of Dr. Stokes. A federal grand jury investigation revealed that Dr. Stokes was “up-coding,” that is, billing for procedures that netted a higher level of reimbursement than the procedures he was actually performing. Specifically, Dr. Stokes was “up-coding” surgical procedures and billing for follow-up office visits for which he was not entitled to reimbursement. He justified these unnecessary office visits by falsely claiming that the patients had developed post-operative infections. A conservative estimate of the fraud indicated that Dr. Stokes over-billed insurance providers by more than $500,000.

The prosecution of this case resulted from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and the Office of Inspector General for the Department of Health and Human Services (HHS). The investigation team included FBI Special Agent Dave Kleinpaste and HHS Special Agent Mark Squeteri.

Mr. Gross praised the work of his staff and the investigators, noting the complex nature of health care fraud investigations. “I am proud of the dedication, professionalism, and hard work of the entire prosecution team,” he said. Mr. Gross added: “Protecting the integrity of the Medicare and health care insurance system is of paramount importance to the United States Attorney’s Office. Not only does health care fraud waste taxpayers’ dollars; it can also jeopardize patient safety.”

Dr. Stokes remains on bond, but has agreed to cease the practice of medicine.

This case was prosecuted by Assistant United States Attorneys Ray Beckering and Ron Stella.