The Far North Dallas psychologist said he treated a single postal worker seven days a week, up to eight hours a day. A federal billing contractor responded by paying the therapist more than $1 million, court records say. Now Michael Ellis Wolf, 62, has pleaded guilty to a five-year health care fraud scheme and agreed to surrender his license to practice psychology. Authorities took him into custody today at the Dallas federal courthouse. He faces up to 10 years in prison, plus fines and restitution, at a sentencing hearing May 7. There was no immediate word on how the scheme went undetected

Dallas Psychologist Remanded Into Federal Custody After Pleading Guilty to Health Care Fraud Offense

DALLAS — Psychologist Michael Ellis Wolf, 62, of Dallas, was remanded into federal custody today after pleading guilty, before U.S. District Judge Jorge A. Solis, to an Information charging one count of health care fraud.  Wolf faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and restitution, and he agrees to surrender his license to practice psychology.  Sentencing is set for May 7, 2014.  Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

Wolf provided psychotherapy to individuals, including civilian employees of the federal government who sustained on-the-job injuries or employment-related occupational illness.  The Federal Employees Compensation Act (FECA) provides disability compensation benefits and payment for medical and rehabilitation care for federal civilian employees who sustain on-the-job injuries or employment-related occupational illness.  The FECA is a health care benefit program administered by the U.S. Department of Labor (DOL), Office of Workers Compensation Program.

As part of his scheme to defraud a health care benefit program, Wolf filed claims for payment of services that were never rendered and for services that were rendered in far less quantities than billed.

For example, through his billings, Wolf claimed he provided therapy for one particular injured federal employee, from January 2008 through mid-2013, seven days a week, when he in truth and fact he would only provide it once or twice a week, for 60 minutes.  He also falsely claimed through billings that he provided therapy to this individual on holidays and on Sundays, and that on multiple days, he provided eight hours of therapy, per day, for this patient.  Wolf also falsely claimed, through billings, that he provided four-eight hours of explanations to this patient’s family and employers multiple times a week, when in fact, he only offered occasional phone or in-office consultation with the family.

During this time period, the total amount billed by Wolf, on behalf of this patient, was more than $1.9 million.  Of the amount billed, Wolf was paid more than $1 million.

The investigation is being conducted by DOL Office of Inspector General and the U.S. Postal Service Office of Inspector General.  Assistant U.S. Attorney P. J. Meitl is in charge of the prosecution.

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FYI: Affiliated Computer Services (ACS) is a private contractor hired by OWCP to serve as the billing administrator for FECA. ACS receives provider enrollment forms from prospective FECA providers, assigned provider numbers, and processes and pay claims for benefits under the Federal Employees’ Compensation Act (FECA). ACS also processes claims for other OWCP programs such as the  Division of Coal Mine Workers’ Compensation (DCMWC) and Division of Energy Employees Occupational Illness Compensation (DEEOIC). The ACS Medical Bill Processing Web Portal also provides claimants and their representatives with access to other claim-related information, which includes medical bill status and medical authorizations.