The former CEO of Brentwood, Tenn.-based Comprehensive Pain Specialists was sentenced to three and a half years in prison July 9 for his role in a $4 million kickback scheme, according to the Department of Justice.
John Davis was sentenced after being convicted of one count of conspiracy to defraud the U.S. and violate the Anti-Kickback Statute and seven counts of violating the Anti-Kickback Statute in April 2019.
According to evidence presented at trial, Mr. Davis arranged for referrals of durable medical equipment orders to one of his co-conspirators and her company, CCC Medical, in exchange for 60 percent of the profit from those referrals. He used funds from CPS to pay bonuses to providers who ordered durable medical equipment for Medicare beneficiaries and referred those orders to CCC Medical, according to the Justice Department.
Mr. Davis allegedly used a shell company called ProMed Solutions to receive more than $770,000 in illegal kickbacks.
Mr. Davis' prison term will be followed by one year of supervised release. He was also ordered to forfeit $770,036.