A Texarkana podiatrist entered pleas of not guilty Tuesday to charges in a 31-count federal indictment accusing him of health care fraud and aggravated identity theft.
Glenn Gregg Petty, who goes by Gregg, appeared for arraignment Tuesday morning before U.S. Magistrate Judge Caroline Craven in a fourth-floor courtroom of Texarkana's downtown federal building. Texarkana lawyer Thomas Johnson entered not-guilty pleas on Petty's behalf to 22 counts of health care fraud and nine counts of aggravated identity theft pending against Petty in the Texarkana Division of the Eastern District of Texas.
Craven released Petty, who appeared in court on a summons, on an unsecured $50,000 appearance bond after Assistant U.S. Attorney Ryan Locker said the government is not seeking pretrial detention. As long as Petty abides by the conditions of his release and makes all court dates, he will remain free while his case proceeds.
Locker said he is filing a motion to have the case designated as complex because of the voluminous amount of evidence. Such a designation allows for a slowing of the proceedings in exception to speedy trial laws in order to give the lawyers adequate time to prepare for trial. That means the Aug. 22 date Craven gave Petty for jury selection before U.S. District Judge Robert Schroeder is likely to change.
Petty, 52, graduated from podiatry school in 1997 and set up shop as Dr. Petty's Foot Clinic the following year in Texarkana, Texas, according to the clinic's website. The website shows the clinic's name is Community Foot Clinic, formerly Dr. Petty's Foot Clinic. Petty also operates Legacy Foot and Ankle in Frisco, Texas, according to clinic staff. A staff member who answered the clinic's Texarkana number said Petty will be working at his Texarkana office on Summerhill Road again later this month.
Petty's indictment alleges he bilked the government of more than $150,000 from September 2010 to January 2013 while operating as Dr. Petty's Foot Clinic.
Counts one through 13 of the indictment allege Petty submitted claims for treatments such as patient exams, X-rays, physical therapy, foot and ankle strapping, injections and ultrasounds on four people who had died prior to the dates of service listed on the claims submitted. One of the patients died Aug. 14, 2010, but Petty allegedly submitted four claims for services June 29, 2011.
Another patient died Dec. 30, 2010, but Petty allegedly billed Medicare three times under that patient's Health Insurance Claim Number for services rendered July 11, 2011. Petty allegedly billed Medicare for four services Dec. 1, 2011, for a patient who died Jan. 11, 2010. Medicare received two bills from Petty with a June 25, 2012, date of service for a patient who died June 14, 2012.
Counts 14 through 17 accuse Petty of billing Medicare for therapeutic exercises for patients who "were never treated, but instead were given instructions to conduct therapeutic exercises on their own," the indictment states.
Counts 18 through 22 allege Medicare received bills from Petty for electronic stimulation treatments that were delivered by unqualified staff and his teenage son using a machine called a MicroVas that is not approved for Medicare funding.
"Petty and others acting at his direction caused to be submitted false and fraudulent claims to Medicare by representing on claim forms that certain treatments had been rendered by Petty personally or by a physical therapist working under his direction when in fact an unqualified staff member or Petty's teenage son were actually performing the treatments," the indictment states. "No physical therapist worked at the clinic or under Petty's direction."
Counts 23 through 31 accuse Petty of aggravated identity theft involving nine stolen identities. Petty allegedly used names and Health Insurance Claim Numbers during the commission of felony health care fraud.
Petty's indictment includes a notice from the government to seek a judgment of $157,660. The indictment alleges Petty submitted claims for more than $600,000 but that he was reimbursed a lower amount.
Counts one through 22, which allege health care fraud, are each punishable by up to 10 years in prison, a fine up to $250,000, or both. Nine counts of aggravated identity theft are each punishable by a mandatory two-year federal prison term which must be served consecutively to any other sentence. A person convicted of aggravated identity theft is not eligible for probation. A fine up to $250,000 is possible on each of the identity theft counts as well.
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