A Pikeville man was indicted this week on federal wire fraud and health care fraud charges related to his ownership and operation of three substance abuse disorder clinics and related businesses in Eastern Kentucky.
The indictment was handed down by a grand jury in the U.S. District Court for the Eastern District of Kentucky on Nov. 18 against Eugene Sisco III, 35, linked to crimes he allegedly committed as the owner and operator of Renew Addiction Treatment Clinic LLC, also known as Behavioral Health Professionals, an outpatient substance abuse disorder clinic with locations in Pike County, Floyd County and Harlan County.
During the same time, the indictment said, Sisco owned and operated ASAP Addiction Treatment LLC, another outpatient substance abuse disorder clinic in Pike County, and RENEW Residential Treatment services LLC, d/b/a Brookside, as well as Toxperts LLC, a urine drug testing laboratory in Pike County.
Through these companies, the indictment charges, Sisco billed patients cash for services for which he also billed Medicaid. The indictment said that, during the same time period, Sisco caused more than $3 million in cash payments from patients to be deposited into bank accounts that he controlled.
According to the indictment, if convicted of the wire fraud charge, Sisco faces a maximum prison sentence of not more than 20 years, as well as a fine of no more than $250,000 or the greater of twice the gross gain or twice the gross loss and supervised release of no more than three years.
The indictment said that, if convicted of the health care fraud charge, Sisco faces not more than 10 years in prison, a fine of no more than $250,000 or the greater of twice the gross gain or twice the gross loss and supervised release of no more than three years.
A summons was issued for Sisco, court documents show, and he is scheduled to appear in court via video on Dec. 7.
For more on this developing story, check out the Nov. 24 edition of the Appalachian News-Express and Nov. 25 edition of the Floyd County Chronicle and Times.