Pine Bluff AR Doctor Found Guilty of Health Care Fraud in Fake IUD Case

Osteopath Kelly Dean Shrum was found guilty by a jury of one count of misdemeanor Misbranding in violation of the Food, Drug, & Cosmetic Act and one count of Health Care Fraud. He was originally indicted on one count each of misbranding and health care fraud and three counts of money laundering for using imported IUDs in his practice, then billing the Arkansas Medicaid Program full price for the IUDs, and depositing proceeds from his work into his personal banking account. According to the Department of Justice, Shrum used the imported IUDs from January 2008 to June 2009, during which the Arkansas Medicaid Program paid him $162,000 in fraudulent claims. Shrum was sentenced to 5 years probation with 200 hours of community service per year, and was required to pay $204,194 in restitution in addition to forfeiture of $75,000 in proceeds.

Who: Agents from the Kansas City Field Office of the FDA Office of Criminal Investigations, in close cooperation with investigators from the Arkansas Medicaid Fraud Control Unit.

When: November 2010, January 2008-June 2009.

Where:Pine Bluff Arkansas, U.S.A.

How: An anonymous tip to the Arkansas Medicaid Fraud Control Unit.

Additional details: In January 2012, Shrum was excluded from participating in any federal health care program for a minimum period of 10 years.

Related sources:

“ Pine Bluff Doctor Sentenced in Health Care Fraud and Misbranding Case ,”FDA Press Release. September 30, 2011.

“ Kelly Dean Schrum Indictment ,” US District Court, Eastern District of Arkansas. October 08, 2009.

“ August 13, 2013: Kelly Dean Schrum Notice of Exclusion From Medicaid Program ,” US Department of Health and Human Services Letter. January 31, 2012.

“ HEALTH Issues Compliance Orders to Two Additional OB/GYN Practices for Use of Non-FDA-Approved IUDs ,”Rhode Island Health Department Archives. June 29, 2010.