Chiropractor Arnold admits to $3.5 million healthcare fraud scheme

ST. LOUIS – An Arnold chiropractor recently admitted to a program in which he falsely claimed medical license and exaggerated his patients’ medical conditions in order to receive more than $3.5 million in disability payments.

Thomas G. Hobbs, 65, pleaded guilty Thursday to the federal charge of conspiracy, admitting to conspiring to commit the crimes of health care fraud, providing false information, stealing government funds and committing Social Security fraud.

Investigators say Hobbs intended to help his patients receive more than $3.5 million in disability payments from the Social Security Administration and private disability insurers.

Hobbs, co-owner of chiropractic clinic Power-Med Inc., admitted he falsely claimed he was medically licensed. Despite his lack of medical license, he purchased and distributed prescription drugs, administered injections, and administered intravenous drugs to patients between 2011 and 2019.

According to his plea agreement, Hobbs knew he wasn’t allowed to give injectables because the Missouri Board of Chiropractic Examiners put him on probation for five years for fraudulently billing insurance companies for unlawful injecting.

As early as 2011, Hobbs also fraudulently assisted patients in receiving disability benefits from the Social Security Administration’s Disability Trust Fund and private disability benefit providers.

According to the plea agreement, Hobbs charged patients between $2,000 and $8,600 for disability form preparation. He also trained her to lie to the Social Security Administration and insurers about her ability to do basic activities like lifting, standing, walking, sitting, remembering, and taking care of her personal needs.

Hobbs is one of 10 people charged from the program in 2020. Six others have pleaded guilty. Hobbs could be sentenced to up to five years in prison and a $250,000 fine. Chiropractor Arnold admits to $3.5 million healthcare fraud scheme

Sarah Y. Kim

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