Fata victim’s lawyer seeks to block insurance paybacks

Oralandar Brand-Williams
The Detroit News

An attorney for victims of convicted oncologist Farid Fata says his clients are being “victimized twice” under the government’s reimbursement plan.

Berkley attorney Jules Olsman filed a complaint in U.S. District Court asking that Medicare and Medicaid and other insurers be paid out of the reimbursement fund instead of seeking repayment from those who said they were given unnecessary cancer drugs by Fata. Olsman filed the petition on behalf of the family of David John Korff, a deceased Fata victim.

“In order to prevent the victims of Fata from being victimized twice, first by Fata and a second time by the government and/or health insurance carriers,” Olsman wrote, he’s seeking a court order “that specifically directs that all claims for reimbursement for medical expenses by Medicare, Medicaid, Blue Cross Blue Shield or any other health insurance carriers be paid as reimbursement by the restitution plan that the court will devise.”

In April, U.S. District Judge Paul Borman ordered that a restitution plan using the millions in liquidated assets from Fata be used to set up a fund for his victims.

About 500 are expected to be reimbursed for out-of-pocket and some other expenses from a $12 million to $13 million restitution fund. Funeral expenses and mental health treatment will be reimbursed out of $1.5 million in a separate fund.

The restitution funds were set up using money taken from a liquidation of Fata’s forfeited assets. Ten percent of the total funds is going to the whistleblower who blew the lid on the former Oakland Township resident’s misdeeds.

Fata, 51, who has been called “Dr. Evil,” pleaded guilty in September 2014 to health care fraud, money laundering and conspiracy to give or receive kickbacks. Federal prosecutor say he billed Medicare and other insurers for $34 million in an elaborate scheme to bilk the insurers.

Fata gave needless cancer drugs to some patients while overmedicating others or prescribing chemotherapy for cancer they didn’t have as part of the scheme.

Fata saw patients at his Michigan Hematology and Oncology Inc. clinics throughout the Metro area.

Fata lost his appeal earlier this month of his 45-year prison. He was sentenced last July by Borman.

There are about 43 pending lawsuits against Fata in Oakland County Circuit Court.


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