Mid-South podiatrist indicted and arrested for $3.8 million health care fraud scheme

Published: Jul. 25, 2022 at 7:09 PM CDT
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LAFAYETTE COUNTY, Miss. (WMC) - A Mid-South podiatrist has been indicted by a federal grand jury in connection with a federal health care fraud scheme.

Marion Shaun Lund of Lafayette County, Miss., has been accused of taking part in a $3.8 million fraud scheme that took place between April 2016 and July 2021.

Lund was a licensed podiatric doctor in Mississippi who owned, operated, and managed The Foot Doctor in the Northern District of Mississippi with an in-house pharmacy through which he prescribed foot bath medications and ordered molecular diagnostic testing for patients.

Lund is facing seven counts of health care fraud, one count of conspiracy to commit health care fraud, and one count of conspiracy to defraud the U.S. and health care benefit programs, including Medicare and TRICARE.

The indictment reads that within the 5-year-long fraud scheme, Lund, along with co-conspirators, fraudulently formulated, prescribed, dispensed, and billed insurance companies for foot bath medications that were produced and dispensed to patients and consequently evaded federal regulations and exploited insurance companies.

In exchange for his participation, Lund allegedly received kickbacks and bribes.

To maximize reimbursements from Medicare, its sponsors, and TRICARE, Lund prescribed foot bath medications that were medically unnecessary, but high-adjudication, court documents read.

One co-conspirator, Logan Hunter Power, allegedly solicited and recruited practitioners such as Lund through his company, Power Medical, LLC.

The indictment states that Power had Lund refer prescriptions to pharmacies that Power had relationships with.

At least $2.9 million in fraudulent claims were submitted by these pharmacies, of which at least $2.3 million was reimbursed to Lund and his accomplices.

Lund was also accused of performing medically unnecessary procedures such as molecular diagnostic testing by collecting biological specimens, such as toenails.

Court documents show Lund and his co-conspirators sold signed doctors’ orders of biological specimens to a diagnostic lab, where the lab then submitted fraudulent claims to health care benefit programs.

Between December 2017 and May 2020, over $900,000 in fraudulent claims were filed through interstate wire transmissions for medically unnecessary testing, causing the lab to be reimbursed more than $200,000.

Court documents show text message history between Lund and Power that provide evidence of the fraud scheme taking place over the years.

On December 28, 2017, Power texted Lund, “Saw the two wound cultures go through. Well done sir.”

Lund responded, “Nice, more where that came from.”

Power replied, “About 75-100 a pop for you for Medicare patients.”

On December 5, 2018, Power texted Lund, “Dude, give me one month of 5 (foot soaks) a day and I’ll send you to Hawaii.”

Lund responded, “Lol.”

Power replied, “Not joking. Delete that before I get arrested, though.”

Lund was indicted on June 16 and arrested nearly a month later on July 15.

Lund’s trial is set for Aug. 22 in Oxford Courtroom 1 before Senior Judge Glen H. Davidson.

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