United States Attorney Mary Beth Buchanan announced today, December 19, 2008, that Douglas Henderson, a resident of Lower Burrell, PA, has been sentenced in federal court in Pittsburgh to imprisonment for 48 months on his conviction for defrauding Highmark Blue Cross/Blue Shield between 1995-2002.

United States District Judge Gary L. Lancaster imposed the sentence on Henderson, 47. In addition to sending Henderson to jail, Judge Lancaster ordered him to pay over $12.1 million restitution to Highmark.

Henderson, a former chiropractor, pleaded guilty earlier in the case to health care fraud, conspiracy and tax fraud. Judge Lancaster stated the sentence imposed was reduced in recognition of Henderson's cooperation with the government's investigation of the fraudulent scheme.

According to information presented to the court by Assistant United States Attorney James Y. Garrett, Henderson defrauded Highmark by falsely claiming reimbursement under patients' health care insurance policies for treatment that had not actually been provided. False claims worth more than $20 million were submitted to Highmark, and Henderson received approximately $12.1 million in insurance benefits. The patients named in the claims agreed to cooperate with Henderson's scheme in return for kickbacks from him of a share of the proceeds. One employee and 13 patients have also been prosecuted for participating in Henderson's fraudulent scheme against Highmark.

Prior to imposing sentence, Judge Lancaster stated that although Henderson's guilty plea and cooperation with the government were important, a jail sentence was required because of the magnitude and venality of his scheme, including enticement of participation by many patients.

Ms. Buchanan commended the Federal Bureau of Investigation, Postal Inspection Service, and Internal Revenue Service for the investigation leading to the successful prosecution of Henderson.