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Mag Mile doctor accused of bilking insurance companies

The owner of a Magnificent Mile surgery center was indicted by a federal grand jury Thursday for allegedly stealing patients’ identities to bilk insurance companies out of $3.5 million.

Paul D. Madison, an anesthesiologist and the owner of Watertower SurgiCenter LLC, was charged with six counts of healthcare fraud, three counts of making false statements in reports, and two counts of aggravated identity theft.

Madison, 59, and a nurse who worked for him are accused of creating false medical and billing records that charged insurers for patient care that was not performed, the U.S. Attorney’s Office in Chicago announced Friday.

Federal authorities say Madison, who could not be reached for comment Friday, committed identity theft because he used his patients’ identities and medical information to submit fraudulent bills.

The 67-year-old nurse, Jeanette Shin of Wheeling, also was charged under the indictment and is facing three counts of making false statements in medical records, authorities say.

Fraudulent bills totaling over $3.5 million allegedly from Madison’s Watertower SurgiCenter, 845 N. Michigan Ave., were submitted to 10 insurance companies and a federal workers’ compensation program between 2005 and 2009, according to officials.

In 2007 the Illinois Department of Financial and Professional Regulation investigated Madison’s billing practices, authorities said.

In an attempt to conceal the fraud scheme from investigators, Madison allegedly instructed an employee to destroy accurate medical records and replace them with forged documents.

Prosecutors also allege Madison directed employees in his billing department to lie to investigators about his medical business’ billing practices.

Federal authorities are attempting to seize $783,000 from Shin and Madison.

If the cash is not forfeited, authorities say they will seize assets belonging to the two, including Madison’s Porsche sports car and a Roll Royce roadster, as well as Shin’s house.

Madison, of Chicago, faces $250,000 in fines and a maximum sentence of 10 years in prison for each healthcare fraud charge, according to officials.

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