5 Charged With Illegal Opioid Distribution Through Cash-Only Pain Clinic

Lisa Hofschulz, 58, who is an Advanced Practice Nurse Practitioner, and her ex-husband Robert Hofschulz, 70, have been indicted by a federal grand jury for conspiring to distribute oxycodone and methadone outside of a professional medical practice.

The two distributed the drugs not for a legitimate medical purpose through their cash-only pain clinic, Clinical Pain Consultants, s.c. (“CPC”) in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 846.

The indictment against Lisa and Robert Hofschulz charges fourteen counts, alleging that CPC collected over $800,000 in cash from patients in 2015 and over $1,000,000 in cash in 2016 because its prescribers, primarily Lisa Hofschulz, prescribed excessive dosages of controlled substances outside of a professional medical practice and not for a legitimate medical purpose. CPC is located in Wauwatosa, Wisconsin.

In a separate case, the grand jury also charged Kameka Simpson, 43, Eric Jasper, 33, and Brittany Washington, 27, with multiple counts of obtaining controlled substances (oxycodone) by fraud, in violation of Title 21, United States Code, Section 843(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

Both of these indictments were part of a larger National Healthcare Fraud and Opioid Takedown coordinated by the Department of Justice and the Department of Health and Human Services.

As part of the alleged conspiracy, Lisa and Robert Hofschulz hired newly graduated nurse practitioners with minimal pain management experience, provided them inadequate training, provided no written policies, and pressured them to prescribe dosages similar to Lisa Hofschulz to patients. Lisa and Robert Hofschulz also failed to provide the new nurse practitioners a (legally required) collaborative physician for much of the time period covered by the conspiracy. The indictment also alleges Lisa and Robert Hofschulz directed an individual not authorized to issue prescriptions (Registered Nurse) to distribute controlled substance prescriptions to customers when authorized prescribers refused. Additionally, Lisa Hofschulz mailed controlled substance prescriptions or allowed them to be picked up from the front desk of CPC without being seen by Lisa Hofschulz or any other prescribers. The indictment alleges that Lisa and Robert Hofschulz “caused an enormous amount of opioids to be distribute throughout Wisconsin, fueling opioid addictions in numerous individuals, while collecting huge sums of cash for themselves.” Finally, the indictment charges that 13 specific prescriptions were issued outside a professional medical practice and not for a legitimate medical purpose.

The indictment against Kameka Simpson, Eric Jasper, and Brittany Washington, each of Milwaukee, Wisconsin, charges eight counts stemming from this group’s passing of fraudulent oxycodone prescriptions purportedly written by an authorized healthcare provider. Some of the defendants were employed by the healthcare provider, who practiced at a pain clinic in West Allis, Wisconsin.

Each count of distribution of controlled substances against Lisa and Robert Hofschulz carries a maximum penalty of 20 years in prison and a $1,000,000 fine. If Kameka Simpson, Eric Jasper, and Brittany Washington are convicted of aggravated identity theft, these defendants each face a mandatory minimum prison sentence of two years, a fine of up to $250,000, as much as one year of supervised release, and a special assessment of $100. Each prescription fraud count carries a maximum penalty of four years’ imprisonment, a fine of up to $250,000, as much as one year of supervised release, and a special assessment of $100.

Both of these indictments were part of a larger National Healthcare Fraud and Opioid Takedown coordinated by the Department of Justice and the Department of Health and Human Services. This year’s takedown was the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.