Suboxone clinic owner gets halfway house, home confinement in $1.4 million opioid tax scheme
By Torsten Ove
March 12, 2019
A Washington County psychiatrist was sentenced Monday to a halfway house and home confinement for not paying income taxes on cash-only payments he received at the Suboxone clinic he ran.
U.S. District Judge Arthur Schwab imposed a term of five years of probation on Allan W. Clark, with 180 days at Renewal, Inc., and another 180 days at home.
He must also pay a $15,000 fine and nearly $400,000 in restitution to the IRS on cash payments he didn’t report to anyone.
Clark owned South Hills Recovery Project in Bridgeville. It accepted cash only. A patient’s first visit was $250. Follow-ups were $150. Eleven doctors, hired to work part-time, handled the patient follow-ups from 2011 through 2013.
Prosecutors said the doctors were paid half of the $150 for the follow-up visits and the clinic got the other half.
Dr. Clark didn’t report that cash on his tax returns and used some of it to make improvements on his house.
He and his lawyers asked for no incarceration, explaining that he “lost focus” on the financial side of the business.
Assistant U.S. Attorney Bob Cessar scoffed at that, saying Dr. Clark deliberately took advantage of the opioid crisis to rake in cash and duck his taxes.
“The defendant was a well-educated psychiatrist with a good job and family,” he said. “He used his medical degree and training to capitalize off of the opioid epidemic through a long pattern of siphoning off payments from opioid dependent patients into his own pocket, and not reporting the siphoned funds as income to the Internal Revenue Service.”
In all, he brought in $1.4 million in gross receipts from the patient visits and didn’t pay $391,472 in taxes on that income.