Two Austin psychologists indicted in Medicaid kickback scheme

William Dubin and David Dubin
William Dubin and David Dubin (via Psychological A.R.T.S.)

AUSITN (KXAN) — Two Austin psychologists and a Cedar Park correctional consultant have been indicted in the largest coordinated health care fraud enforcement action to date.

The U.S. Department of Justice says 72-year-old Dr. William Joseph Dubin and his 32-year-old son, Dr. David Fox Dubin, are accused of conspiring with Glen Elwood McKenzie Jr., 67, in an elaborate kickback scheme to defraud Medicaid.

According to the indictment, the Dubins’ owned and operated Psychological A.R.T.S (PARTS) in Austin. PARTS had a testing office located at 7801 N. Lamar Blvd. and a therapy office location at 4131 Spicewood Springs Rd. According to PARTS’ website, Dr. William Dubin deals with emotional and addictive issues while his son specializes in industrial/organization psychology and psychological assessment.

Federal officials say the Dubins’ would work with McKenzie, who was the president of the board of the director of an emergency shelter that provided services for children who had been removed from their homes by the Texas Department of Family and Protective Services. Court documents indicate McKenzie used his position at the shelter, which is located approximately 80 miles from Austin, to refer children to PARTS for various psychological services, including but not limited to, psychological testing.

PARTS would then turn around and bill Medicaid and the Texas Vocational Rehabilitation Services program (VR) for the services rendered. In exchange for the patient referrals, PARTS would pay a 10-percent kickback to McKenzie.

The alleged scheme ran from January 2011 to June 2015. During that time, the psychologists fraudulently billed approximately $300,000 to the Texas Medicaid program and the VR program.

According to the indictment, the doctors had “students and interns, who were unlicensed and unsupervised, to conduct psychiatric diagnostic evaluations of the children and youth referred to them by McKenzie.” The same unlicensed individuals would then prepare the reports that assess the child’s behavior and future treatment.

In the cases where a licensed psychological associate would provide services, the Dubins’ would have them prepare psychiatric diagnostic evaluations of the children claiming Dr. William Dubin had done the work so they can bill Medicaid at a higher rate.

The Dubins’ were indicted on the following counts:

  • 1 count of conspiracy to violate the federal anti-kickback law
  • 5 counts of paying illegal kickbacks
  • 1 count of conspiracy to commit health care fraud
  • 7 counts of health care fraud and aiding and abetting health care fraud
  • 6 counts of aggravated identity theft

McKenzie is charged with one count of conspiracy to violate the federal anti-kickback law and five counts of receiving illegal kickbacks.

If convicted, each count related to illegal kickbacks calls for up to five years in federal prison; each count related to Health Care Fraud calls for up to 10 years in federal prison; and, each count related to aggravated identity theft calls for up to two years in federal prison.

The arrest of these three Central Texas men was part of a larger enforcement action by the Medicare Fraud Strike Force. More than 400 suspects across the country were arrested, accused of participating in health care fraud schemes that billed $1.3 billion in false claims.

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