The State Journal-Register (Springfield, IL)
Psychiatrist, wife get prison time;
Couple convicted of fraud in September 2001
By Chris Dettro
November 1, 2002

A Springfield psychiatrist and his wife were sentenced to prison terms Thursday night after a nearly eight-hour hearing in a case the government said is being watched closely by the medical community.

U.S. District Judge Jeanne Scott sentenced Dr. Robert Mitrione to 23 months in federal prison and his wife/office manager, Marla DeVore, to 15 months. “It was remarkable to hear a defense that ‘our records were in disarray,'” Scott said of the complicated health-care fraud case that began with an indictment 2 1/2 years ago. “I believe greed and lack of judgment also entered into the decision to bill Medicare and Medicaid.”

Mitrione, 53, and DeVore, 50, both of Hazel Dell Road, were convicted in September 2001 of conspiring to defraud the state Department of Public Aid and other health-care plans by submitting false claims. Mitrione was convicted of 12 of the 14 counts of which he was accused, while DeVore was found guilty of 10 of the same 14 counts after a four-week trial.

Trial testimony indicated that from October 1994 to January 1998, Mitrione and DeVore knew Medicaid was being billed for treatment done by therapists, not personally by Mitrione, which is against regulations. They also were convicted of directing an alcohol and drug counselor to co-lead a group therapy session of survivors of sexual abuse. On some occasions, the unqualified person was directed to handle the group alone.

But in August, Scott granted the pair new trials on most of the charges, though she let stand guilty verdicts on two counts.

She ruled the jury might have reached a different verdict on 10 counts against Mitrione and on eight counts against DeVore had it known testimony by a prosecution witness, Deanna Statler of Public Aid’s fraud control unit, was false.

After filing notice it would appeal Scott’s ruling, the government later withdrew the notice and on Sept. 26 said it would not retry Mitrione and DeVore on the 18 counts.

Thursday’s sentencing was for the couple’s convictions on single counts of mail fraud and of filing false claims, both relating to their having an unqualified person direct group therapy sessions for survivors of sexual abuse, then billing Public Aid as if Mitrione personally provided the services.

Much of the hearing consisted of testimony and arguments concerning what Scott called “a myriad of objections” to the federal probation department’s pre-sentence report that would be used to determine the defendants’ sentencing guideline ranges.

“This case is being watched closely by some in the medical community,” said assistant U.S attorney Patrick Hansen in asking for maximum guideline sentences of 21 months for DeVore and 27 months for Mitrione. “It has great importance to them to see what happens when a medical practice makes a conscious decision to cheat. A sentence at the high end, if not the maximum, is necessary to let those watching know this won’t be tolerated.”

Scott, however, said that the potential to send a message had been compromised by the government’s problem with false testimony.

Springfield attorney Thomas Schanzle-Haskins, who along with Cathy Pilkington of Chicago represented DeVore, said incarceration would have a “devastating” effect on his client and that a maximum sentence would be no more of a deterrent to her than the minimum.

He said that neither of DeVore’s parents is in good health, however, and the difference between the top and bottom of the guideline range could make a big difference to them.

Leavenworth, Kan., attorney Thomas Dawson, who represented Mitrione, said his client had contributed much to the community and a maximum sentence was unwarranted.

After hearing testimony from a Bloomington CPA hired by the defense and government witnesses from the Illinois State Police Medicaid Fraud Control Unit and the inspector general’s office of the Department of Health and Human Services, Scott said she would be conservative in determining the amount of loss for criminal sanctions.

“There needs to be some sanction that carries over to sentencing for using false testimony,” Scott said, reducing the government’s loss figure from $14,611 and setting the amount of loss to Medicaid at $11,255. Mitrione and DeVore were ordered to make restitution in that amount.
Each also will serve three years on supervised release after their prison terms end.