Four from Ky. clinic indicted on federal fraud charges

WINCHESTER, Ky. (WKYT) - Four people have been federally indicted on more than a dozen counts of healthcare fraud-related charges.

The alleged Medicare and Medicaid-related crimes happened over the course of more than three years.

According to their website, Kentucky Addiction Center has four locations across the bluegrass: in Paducah, London and the two mentioned in the court filings in Paintsville and Winchester.

The indictment says the alleged fraud occurred between October 2017 through at least January 2021.

Court records say that the two owners of KAC, Kristy Berry and Michael Bregenzer, as well as billing manager Barbie Vanhoose and Dr. Jose Alzadon, submitted bills for services that weren’t medically necessary or were falsely filed under another doctor’s name.

Details of the alleged fraud include up-billing for more expensive services than those provided.

Court documents also indicate the group dispensed Suboxone in an unauthorized way.

Current employees reached out to WKYT, who tell us they remember the Winchester facility being raided, and it is unclear what will happen to the facility or patients.

Records show, of the four defendants, so far, only Dr. Alzadon has been arraigned. Part of that arraignment means he is not to prescribe any controlled substances, must give up his passport, and may have no contact with other defendants.

WKYT has reached out to the U.S. Attorney’s Office to find out how much money may have been involved in these alleged crimes, but they said that information has not yet been made publicly available.

The group is facing a maximum of 10 years for each of the 12 health care fraud charges, a fine of $250,000 or a sum determined by the amount of money gained or lost, and supervised release of no more than three years plus restitution if it applies.

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