Nevada Doctor Charged with $95 Million Wound Care Fraud on Medicare

National Fraud Enforcement Division’s first announced charges in Nevada since the formation of the West Coast Health Care Fraud Strike Force

LAS VEGAS – A federal grand jury in the District of Nevada returned an indictment on Tuesday charging Stephen Dubin, M.D., 74, of Henderson, Nevada, with a $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts that he and others applied to elderly Medicare patients.

“This indictment exposes a scheme driven by greed, not medicine. As alleged, this provider exploited elderly patients by pushing costly and unnecessary medical procedures, then lied to Medicare to pocket millions of taxpayer dollars,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Schemes like this drain Medicare of resources and impose substantial burdens on the taxpayers who fund it. Let this serve as a warning: any healthcare professional who tries to get rich at the expense of patient care can expect to face the same scrutiny—and the same consequences.”

“Healthcare fraud is not a victimless crime; it steals vital resources from elderly and vulnerable citizens who truly need life-saving treatments,” said First Assistant United States Attorney Sigal Chattah of the District of Nevada. “These defendants prioritized personal greed over patient care by weaponizing complex billing codes for advanced wound care products. As part of the West Coast Health Care Strike Force, our office, alongside our federal law enforcement partners, will continue to aggressively dismantle predatory schemes that target public healthcare programs.”

“Dr. Duben, as a physician, had a duty to prioritize the well-being of his patients; however, he engaged in unethical practices by prescribing costly, unnecessary allografts at taxpayer expense,” said Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office. “This betrayal of trust and exploitation of his healthcare position for personal financial gain is both cruel and premeditated. The FBI remains dedicated to collaborating with federal, state, and local agencies to investigate individuals like Dr. Duben and to safeguard federally funded healthcare programs from provider abuse.”

“These charges reflect a clear and calculated betrayal of elderly Medicare patients who depend on trusted providers for legitimate care,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “Schemes like this siphon taxpayer dollars, undermine patient safety, and erode confidence in our health care system. HHS‑OIG, working closely with our law enforcement partners, will continue to identify and hold accountable those who exploit federally funded health care programs for personal gain.”

“Fraud involving TRICARE, the healthcare program that provides medical coverage for active duty service members, retirees, and their families, strikes at a benefit earned through service to our nation,” said John Helsing, Special Agent in Charge of the Defense Criminal Investigative Service’s Western Field Office. “As the criminal investigative arm of the Department of Defense’s Office of Inspector General, DCIS is steadfast in protecting TRICARE from individuals who manipulate medical billing for personal gain. The West Coast Health Care Fraud Task Force, working with our federal partners, greatly enhances our ability to detect and dismantle these schemes, ensuring we preserve the integrity of our nation’s military health system.”

According to court documents, Dubin, a medical doctor and sole owner of Dubin Medical Consultants, Inc. (a/k/a Wound MD) caused Medicare to be billed over $95 million for expensive amniotic allografts that he procured through illegal kickbacks and bribes. Dubin allegedly applied these allografts to elderly patients—including vulnerable patients in hospice care—without medical necessity. Medicare paid over $54 million based on Dubin’s false and fraudulent claims.

As alleged in the indictment, Dubin received illegal kickbacks, bribes, and rebates from two different allograft distributors. Some of these illegal payments were falsely structured to appear as legitimate “Rebate Agreements” while concealing their true nature and illegal payments. These purported rebates substantially reduced Dubin’s true net cost of acquiring the allografts. Dubin allegedly submitted claims to Medicare seeking reimbursement for the price listed on sham full-price invoices, instead of the actual price he paid for the allografts. Dubin and others allegedly kept as profit the difference between Medicare’s reimbursement and the price paid for the allografts.

The indictment also alleges that Dubin received illegal kickbacks from one allograft distributor through payments from a pass-through bank account held in the name of a shell company in exchange for purchasing allografts from the distributor.

Induced by these illegal kickbacks, bribes, and rebates, Dubin and his co-conspirators applied allografts without regard to medical necessity, including by applying allografts to infected wounds; to wounds that were not responding to allograft treatment; without first attempting, completing, or confirming conservative wound care treatment as required by Medicare; and in quantities that far exceeded the size of wounds. Dubin allegedly selected allografts that would maximize his profit, not based on the patient’s need. To conceal the lack of medical necessity, Dubin falsified patient medical records to make it appear as though the application of allografts was medically reasonable and met Medicare requirements.

Dubin used the proceeds of his alleged offenses to fund a lavish lifestyle, including having multi-million-dollar yachts built for him.

Dubin is charged with conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison for each count.

FBI, HHS-OIG, and DCIS are investigating the case.

Trial Attorneys Chris Wenger and Shane Butland of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

On April 30, the Fraud Division announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative uniting the Division’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada, and Northern District of California.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.