Virginia Beach Doctor Sentenced in Health Care Fraud Case

(Norfolk, VA) - Jeremy Averill Stowell, age 64, of Virginia Beach, Virginia, was sentenced today to serve 42 months in prison and pay a fine of $ 20,000.00 for distribution of controlled substances and health care fraud. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia announced the sentencing after Stowell’s appearance today before United States District Court Judge Raymond A. Jackson.

Stowell, and a corporation he controlled, were also ordered to make full restitution to the Virginia Department of Medical Services for the health care fraud in the amount of$32,928.95. Both Stowell and the corporation had previously agreed to an administrative forfeiture of nearly $300,000.00 that was seized by the Federal Bureau of Investigation (FBI)and the Drug Enforcement Administration (DEA) as part of this investigation. Stowell also previously agreed to surrender his DEA license and his Virginia State medical license.

Stowell and the corporation admitted to prescribing to persons not having a legitimate medical need and admitted that such conduct was outside the scope of professional practice.Both also admitted to billing illegally for patient visits that did not occur in what is called“phantom billings” and billing after having been excluded from the Medicaid program.

The investigation was jointly conducted by the Norfolk Division of the FBI; the Norfolk Division of the DEA; and, the Richmond Division of the DEA Diversion Unit. The investigation included investigators from the Virginia Beach Police Department and the Virginia State Medicaid Fraud Task Force.

Assistant United States Attorney Kevin M. Comstock of the Norfolk Division handled the case for the U.S. Attorney’s Office.