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Case Number: 3:21-cr-00205
Judge: Jack Zouhary
Court: United States District Court for the Northern District of Ohio (Lucas County)
Plaintiff's Attorney: United States Attorney’s Office in Toledo
Description: Toldeo, Ohio criminal defense lawyer represented Defendant charged with conspiracy, healthcare fraud, and making a false statement on an application for charitable tax-exempt status with the IRS.
Kevin A. Clay, age 39, of Perrysburg, Ohio, was the co-owner of Theramedical, LLC, a pharmaceutical marketing company specializing in compounded pain and scar cream. The evidence showed that Clay and Theramedical recruited and paid individuals to obtain prescriptions for pain and scar cream, some of which cost approximately $15,000 for a single prescription. The prescriptions were submitted to a Cleveland-area pharmacy, which filled the prescription and billed insurance companies. Members of the scheme concealed the fact that patients were paid to get the prescriptions, and that the prescriptions were often medically unnecessary. In less than two years, Theramedical generated insurance billings of approximately $17 million from the fraudulent scheme. Clay was also convicted of making a false application for tax-exempt status for the Clay Foundation. In his application to the IRS, Clay claimed the foundation was a public charity, however, it was almost entirely funded by fraud proceeds from Theramedical, not the public. Clay conducted little or no fundraising, awarded virtually no scholarships, and purchased gold and silver in his own name with foundation funds.
This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, and the Internal Revenue Service–Criminal Investigations in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case was prosecuted by Assistant U.S. Attorneys Jody L. King and Gene Crawford.
18:1349 Conspiracy to Commit Healthcare Fraud
18:1347 and 2 Health Care Fraud
26:7206(1) False Statement
Outcome: 05/24/2023 67 Certification of Trial Exhibits for Jury Deliberations as to Kevin Clay (1). Judge Jack Zouhary on 5/24/2023. (D,L) (Entered: 05/24/2023)
05/24/2023 Minutes of Jury Trial [non-document] as to Kevin Clay (1) held on 5/23/2023 before Judge Jack Zouhary. Appearances: Defendant present with counsel Rick Kerger and Joshua Lowther; Jody King and Gene Crawford for the Government. Closing arguments presented. Jury deliberations begun and concluded. Verdict of GUILTY returned as to Count 1, 2, and 4 of the Indictment; Verdict of NOT GUILTY returned as to Count 3 of the Indictment. Defendant and the Government stipulated to the Court determining forfeiture. (Court Reporter: Diana Ziegelhofer) Time: 7 hours. (D,L) (Entered: 05/24/2023)
05/24/2023 68 Jury Verdict as to Kevin Clay (1). GUILTY on Counts 1, 2, and 4 of the Indictment. NOT GUILTY on Count 3 of the Indictment. (D,L) (Additional attachment(s) added on 5/24/2023: # 1 Unredacted Jury Verdict) (D,L). (Entered: 05/24/2023)